We hired an Emirati employee. How should we deduct the pension contribution

According to UAE law, the Emirati employee's pension contribution will be deducted at the full rate of 11%, even if she worked only for a part of the month. It is not prorated for the remaining days of the month.

For more precise advice on pension contributions and other benefits, feel free to contact us via WhatsApp. Our office specializes in employment law and compliance with UAE regulations, with extensive experience providing tailored legal solutions.

Her pension contribution will be prorated based on her salary for the remaining days of December.

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

For an Emirati employee hired on December 23, the pension contribution of 11% will be deducted at the full rate based on her total monthly salary, not prorated for the remaining days of December.

According to the latest GPSSA regulations, the full contribution applies from the employee's start date, with the employer contributing 15% (or 12.5% if the salary is below AED 20,000).

The contribution should be calculated on the complete salary, including any additional payments, and will be processed for the entire month despite the partial month of employment.

Thanks & Regards,

ABDUL WAHIED