Dubai, UAE – The UAE government has announced a 2.5 percent payment support to its citizens’ pension contributions through the Nafis program.
The subsidy applies specifically to Emirati employees in the private sector and comes with a condition: both the company’s information and the employee’s data must be regularly updated with the General Pension and Social Security Authority (GPSSA).
Under this initiative, the government will cover the contribution account salary difference for insured Emiratis working in the private sector during the first five years of their employment. The subsidy is linked to the value of the salary and study certificate provided by the employer.
To ensure the successful implementation of this support, it is crucial that both the company and the employee maintain up-to-date records with GPSSA, which is electronically linked to the Ministry of Human Resources and Emiratisation.
In terms of the contribution rate, insured Emiratis employed in both government and private sectors are subject to a 20 percent contribution, with the insured individual responsible for 5 percent, and the entity covering the remaining 15 percent.
Notably, 2.5 percent of this entity contribution will now be supported by the UAE government for Emirati employees in the private sector. This results in private sector employers paying only 12.5 percent of the total contribution.
To be eligible for this pension support, insured individuals must be between 18 and 60 years old at the time of their appointment. They also need to provide a medical report from a GPSSA-approved medical authority to demonstrate their fitness for work.
The opportunity extends to all individuals who acquire UAE nationality at any point in time. To fully benefit from the Nafis program, both registered entities and insured Emiratis must ensure that monthly contributions are made promptly.
The initiative impacts all Emiratis employed in various sectors across the UAE, as they are covered by the provisions of Federal Law no. 7 of 1999 on Pension and Social Security, along with its subsequent amendments. The only exceptions are employees in the government of Abu Dhabi and Sharjah, as well as those in the private sector in Abu Dhabi.