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Emirati Pension Contributions Increase by 6% Under New Law

The UAE has implemented a new law, Law No. 57 of 2023, which increases the monthly pension contributions for Emirati employees who joined the workforce on or after October 31, 2023. The total contribution salary has been raised to 26%, with Emirati employees contributing 11%, and employers covering the remaining 15%. However, for Emiratis in the private sector with contribution account salaries below Dh20,000, the government supports them with a 2.5% contribution. This change marks an increase from the previous rate, where employees contributed 5%, employers contributed 12.5%, and the government covered 2.5%. The new law provides options for payment adjustments for government entities and private sector firms employing UAE citizens. This adjustment is applicable for three months, from October to December 2023. The General Pension and Social Security Authority of the UAE issued a circular in November to guide public and private sector entities on implementing the new contribution rates, particularly for Emiratis joining the workforce after October 31, 2023, and those not previously covered by Law No. 7 of 1999.

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