GPSSA Clarifies Pension Contribution Calculation Rules for Private Sector Employers

The General Pension and Social Security Authority (GPSSA) issued an operational directive on 12 November 2026 clarifying monthly contribution calculation rules for insured UAE national employees across both government and private entities, according to the Emirates News Agency.

For private sector businesses, the GPSSA stated that contribution amounts must be strictly calculated based on the employee's contribution salary approved in January. This initial figure remains frozen as the mandatory baseline for the entire calendar year, meaning mid-year salary increases will not alter monthly pension obligations until the subsequent January, unless such raises are backdated to January.

For employees who join an establishment after January, contribution calculations must remain tied to their initial starting salary through the end of December. The GPSSA warned that employers submitting inaccurate records or delaying payments through the Ma'ashi portal will face statutory financial penalties.