General Pension And Social Security Authority (GPSSA)
GPSSA, which stands for the General Pension and Social Security Authority, is a vital entity in the United Arab Emirates (UAE) responsible for managing pension and social security benefits for employees. For employers using Zoho Payroll, understanding GPSSA is crucial to ensure compliance and provide employees from UAE with the necessary benefits.
GPSSA oversees the pension and social security system in the UAE, aiming to safeguard the financial well-being of employees during retirement and in times of need. As an employer, here are key points to grasp:
Mandatory Contributions
Employers and employees are required to make monthly contributions to the GPSSA. These contributions are calculated based on the employee’s salary by Zoho Payroll.
| Authority | Employees' Contribution | Employer’s Contribution | Can be renewed at the start of the fiscal year? | Applicable for Citizens of |
|---|---|---|---|---|
| General Pension And Social Security Authority (GPSSA) | 5.00% | 12.50% | Yes | UAE |
Benefit Entitlements
GPSSA provides various benefits, including retirement pensions, disability benefits, and social security coverage.
Compliance and Reporting
Employers must stay compliant with GPSSA regulations. This involves accurate and timely reporting of maximum contributory wage for employees, and any changes in employment status. You must configure GPSSA in Zoho Payroll and run payrolls to generate reports that meet GPSSA requirements.
Configuring GPSSA in Zoho Payroll
Let’s see how you can configure GPSSA in Zoho payroll.
Pre-requisite: You will only be able to configure GPSSA if you’ve created or imported employees who are UAE nationals.
- Click Settings on the left sidebar.
- Select Social Security.
- Click Edit in the General Pension And Social Security Authority (GPSSA) card.
- Enter the Maximum Contributory Wage. This is the salary limit to which both employer and employee contribution rates apply.
- Select the Postpone the updated GPSSA contributions due to Salary revisions to the next calendar year option if you wish to postpone GPSSA deductions resulting from salary revisions, you have the option to delay these deductions until the first pay run of the next calendar year.
- Click Save.
Pro-tip:
View Salary Components Used for GPSSA Contributions
Understanding how the salary contributes to GPSSA is vital. Click the View Salary Components Used for GPSSA Contribution option to view the specific salary components is used to calculate the maximum contributory wage, providing transparency in the allocation of your salary towards GPSSA contributions.