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 our app, 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 our app.
Old Pension Scheme (For employees hired before 31/10/2023)
| Authority | Employees’ Contribution | Employer’s Contribution | Applicable for Citizens of |
|---|---|---|---|
| General Pension And Social Security Authority (GPSSA) | 5% | 12.5% | UAE |
New Pension Scheme (For employees hired on or after 31/10/2023)
| Authority | Employees’ Contribution | Employer’s Contribution | Applicable for Citizens of |
|---|---|---|---|
| General Pension And Social Security Authority (GPSSA) | 11% | 15% (12.5% if salary < AED 20,000) | UAE |
Note 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 and run payrolls to generate reports that meet GPSSA requirements.
Configuring GPSSA
Let’s see how you can configure GPSSA .
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 top right corner and select Social Security under Setup and Configurations.
- 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.
- Enable the Calculate on Pro Rata Basis option if you want contributions to be calculated based on the actual working days of the employee. This ensures that contributions are proportional to the number of days worked in a given month.
- 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 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.