General Pensions Authority Calls On Employers To Ensure Payment Of Subscriptions

The General Pension and Social Security Authority, GPSSA, called on private and government employers to ensure the payment of "subscriptions" to the authority during the period specified via its subscription collections e-system, in line with Federal Law No. 07 of 1999 on Pensions and Social Security, and its amendments.

ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 19th Dec, 2018) The General Pension and Social Security Authority, GPSSA, called on private and government employers to ensure the payment of "subscriptions" to the authority during the period specified via its subscription collections e-system, in line with Federal Law No. 07 of 1999 on Pensions and Social Security, and its amendments.

According to Article 1 of Federal Law No. 07, a "subscription period" is defined as the period of service for which the insured Emirati national is entitled to a pension, or a benefit, as the case may be. The subscription is paid to the insured person as stipulated within the law.

In a circular, the authority confirmed that the delay in transferring the subscriptions to the authority would not relieve the employer from incurring the additional amounts resulting from the delay in payment.

The authority pointed out that the employer is liable for deducting the portion of the insured amount in the subscription plus the portion of the employer and paying it to the authority during the periods specified by law.

"Therefore, breaching this obligation will make the employer liable for paying any additional amounts resulting from the failure to pay subscriptions on the specified dates," the GPSSA added.

It also said that subscriptions are payable from the beginning of the month following the month on which they are due, and they may be extended until the 15th day of that month. However, they are irrecoverable, according to Article 13 of the law. The authority indicated that the delay in paying the subscriptions beyond the dates specified by law would make the employer liable for paying an additional amount of 0.1 percent of the due subscriptions for each day of delay without the need of notice or warning, according to the Article 14 of the Law.