Social Contribution Calculation of GCC Nationals Working in UAE
HLB UAE Payroll Team
GCC nationals are the citizens holding the nationality of one of the Gulf Cooperation Council countries i.e. UAE, KSA, Oman, Qatar, Kuwait and Bahrain. If any GCC national staff is working in any GCC member countries outside their home countries, social security is extended to them.
The employers in UAE are liable to mandatory pension subscriptions for their GCC employees according to the social security law in their home countries. In terms of subscription, it must not exceed the subscription share designated for the employers to UAE nationals working for them and the GCC employees assume the contribution variances if any.
GPSSA (General Pension and Social Security Authority) law covers the Gulf Cooperation Council national’s social contribution working in UAE.
Here are the Contribution percentage for GCC nationals working in private sector of each GCC country in accordance with the applicable laws in every GCC country.
|Country||Organization name||Contribution Basis||Employer Contribution||Employee Contribution||Total Contribution|
|Bahrain||Social Insurance Organization||Basic Salary + Fixed allowances||9%||6%||15%|
|Oman||Public Authority for Social Insurance (PASI)||Total Salary||10.50%||7%||17.50%|
|Saudi Arabia||General Organization for Social Insurance (GOSI)||Basic salary + Housing allowance||9%||9%||18%|
|Kuwait||The Public Institution for Social Security||Basic Salary + all allowances provided salary does not exceed KD 2750||11.%||7.5%||18.50%|
|Qatar||General Retirement and Social Insurance authority||Basic salary + Social allowance||10%||5%||15%|
For nations worldwide, social security is a major concern when the equations of the business environment are regularly changing for various reasons across the world. The UAE government is making significant changes in its operations to help its citizens and is taking quintessential effort which benefit employees by allowing them to retain their level of life even after they leave their employment. Also, the contribution to social security ensures financial stability.
UAE PAYROLL PROCESS
The process of payroll is a little complicated and time-consuming; hence it is always recommended outsourcing your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business. One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing pay slips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here.
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subject to change and is not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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