The General Pension and Social Security Authority (GPSSA) has issued a reminder to employers in the United Arab Emirates regarding the registration of Emirati employees. As per Federal Law No. 57 of 2023, all companies subject to the provisions of this law are mandated to register their Emirati staff with the GPSSA within 30 days of their employment commencement date.
This regulation emphasizes the UAE's commitment to the Nafis program, a government initiative designed to bolster Emirati participation in the private sector workforce. Nafis aims to significantly increase the number of Emirati beneficiaries by 170,000 over the next five years, from the current figure of 75,000.
The GPSSA has stressed the importance of timely registration, highlighting the potential repercussions for non-compliance. Employers who fail to register their Emirati staff within the stipulated 30-day window will face a daily penalty of 200 AED (approximately $55 USD) for each unregistered employee. This penalty amount is multiplied by the total number of Emirati employees on the company's payroll, potentially resulting in significant financial repercussions for companies with a large Emirati workforce.
The registration process not only ensures Emirati employees are enrolled in the social security system but also facilitates their access to a range of benefits offered under the Nafis program. These benefits include an Emirati Salary Support Scheme, a Pension Programme, a Child Allowance Scheme, and a Talent Programme, all designed to enhance the overall employment experience for Emirati nationals in the private sector.
In addition to the 30-day registration deadline, the GPSSA has outlined further employer obligations. Companies are required to notify the GPSSA within 15 days of the termination of an Emirati employee's service. Furthermore, employers are responsible for submitting employee salary details and other relevant data to the GPSSA within 10 days of registration. This information is crucial for calculating the pre-determined social security contributions mandated under Federal Law No. 57 of 2023.
The GPSSA's recent announcement serves as a clear reminder to employers of their legal obligations regarding the registration and social security contributions of their Emirati employees. Timely compliance with these regulations is not only essential to avoid financial penalties but also contributes to the success of the Nafis program in empowering Emirati nationals within the UAE's private sector.