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- December 23, 2023
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UAE New monthly pension contributions for Emiratis announced
Read MoreAccording to Law No. 57 of 2023, the monthly pension contributions for Emirati workers who began working after October 31, 2023, were increased by 6%. Currently, 26% of the pay is the entire contribution.
The employer will cover the remaining 15% of the total under the new rate, with the Emirati employee contributing 11% of it. However, as a means of encouraging employers to engage Emiratis in the private sector, the UAE government pays a rate of 2.5 percent to Emiratis employed in the private sector whose contribution account salary do not exceed Dh20,000.
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In the past, companies paid 12.5% of the monthly contribution pay to private sector employees, who contributed 5%. The government covered the remaining 2.5 percent.
Officials from around 120 public and commercial organisations attended an awareness workshop where this was disclosed.
All public and private sector organisations received a new circular in November that provided guidelines for the transfer of contribution payments on behalf of Emiratis who would be joining the workforce for the first time as of October 31, 2023, and those who were not previously covered by the current Law No. 7 of 1999.
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Government agencies will contribute 15% of monthly pension contributions for Emirati personnel working in the public sector; those joining after October 31, 2023 will be responsible for the remaining 11%. The employee paid 5% and the government body paid 15% under the prior legislation.
Employees in the private sector who are Emiratis are eligible for a maximum pension of Dh70,000, whereas those in the government sector can only get Dh100,000. However, the monthly minimum pension is Dh10,000.
Why new law issued?
In order to ensure the General Pension and Social Security Authority’s (GPSSA) financial sustainability, a new law has been issued that will extend the benefits of the Emirati workforce’s experience for a longer period of time, increase the retirement pension’s value as employment years increase, and create a financial balance between its revenues and expenses.
The new law also aims to give equal contributions and gratuity rights to employees in the public and private sectors, link pensions to inflation in light of rising living expenses, and establish a social insurance system that enables women to fulfil their family responsibilities by providing favourable pension conditions, such as a reduction in employment years.
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The Authority highlighted that under the new legislation, government agencies and private companies that hire nationals of the United Arab Emirates have two choices for paying contributions at the new rates for a three-month period beginning in October and ending in December 2023.
The GPSSA also stated that, as long as the employer guarantees accuracy in all accounts, the entities won’t be responsible for any further costs resulting from a failure to pay the contribution difference for the three months between October and December 2023.
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When the law doesn’t apply
Even if they resumed employment in accordance with the new law, Emiratis who were employed before October 31, 2023, as well as pensioners who received their pension before October 31, 2023, are exempt from the new law, according to Fatima Ahli, contribution section manager for the Benefits Management Department at the GPSSA. Nonetheless, the 1999 statute still applies to them.
Additionally, she stated that Emiratis who got an end-of-service gratuity prior to the end of October are exempt from the rule. Ministers who retired before October 31, 2023 are also not covered. If they return to work in accordance with the new law, they will be protected by the 1999 law.
Even if they resumed employment in accordance with the new law, Emiratis who were employed before October 31, 2023, as well as pensioners who received their pension before October 31, 2023, are exempt from the new law, according to Fatima Ahli, contribution section manager for the Benefits Management Department at the GPSSA. Nonetheless, the 1999 statute still applies to them.
Additionally, she stated that Emiratis who got an end-of-service gratuity prior to the end of October are exempt from the rule. Ministers who retired before October 31, 2023 are also not covered. If they return to work in accordance with the new law, they will be protected by the 1999 law.
For the first time, Emirati nationals serving in diplomatic missions abroad as well as in regional, international, and political posts are also subject to the legislation.
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- December 23, 2023
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UAE demands that private businesses achieve their emiratization goals by December 31.
Read MoreUAE demands that private businesses achieve their emiratization goals by December 31.
Dubai: By the end of December, private sector businesses with fifty or more workers must fulfil the Ministry of Human Resources and Emiratization’s (MoHRE) Emiratization objectives for 2023, which aim for a two percent increase in the Emiratization of skilled positions.
Companies who “fail to comply with annual Emiratization targets will be required to pay financial contributions starting from January 2024, in line with Emiratization policies and decisions,” according to a statement released by the Ministry on Monday.
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“The Nafis platform, which gives access to a sizable pool of qualified UAE citizens with expertise in a variety of sectors, can help companies that have yet to fulfil their commitments fill their open positions,” the MoHRE stated.
Companies were advised by the Ministry not to seek to circumvent Emiratization goals or participate in fraudulent Emiratization.
The Ministry highlighted the “efficiency of its inspection system in detecting such practices” and said that “harmful practices that aim to avoid commitments will be dealt with firmly and according to the law.”
Detecting violations
The inspection team of MoHRE has found 916 enterprises that have employed 1,411 UAE citizens as a result of breaking Emiratization decisions, trying to avoid Emiratization targets, and creating fictitious Emiratization roles since mid-2022.
The Ministry praised more than 18,000 businesses for their dedication to Emiratization initiatives and their role in the remarkable rise in the number of UAE nationals entering the private sector—roughly 88,000 in total—in this historic and unprecedented period.
Emiratisation Partners Club
The Ministry outlined the advantages and benefits that companies receive when they become members of the Emiratization Partners Club. These include a reduction of up to 80% in the service fees charged by MoHRE, priority in the government procurement system, joint ventures with the Ministry of Finance, and access to the Nafis program’s benefits for both individuals and companies. These advantages, together with others, support their business expansion needs and guarantee excellence.
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- December 23, 2023
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Dubai announces a government employee New Year's holiday.
Read MoreDubai announces a government employee New Year's holiday.
Dubai: The Human Resources Department of the Dubai Government has proclaimed Monday, January 1, 2024, as the official New Year’s holiday for all government institutions in Dubai. The official start date of work will be Tuesday, January 2, 2024.
The department’s circular excluded organisations, departments, and departments whose tasks involve managing public service facilities or having personnel who work in shifts.
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