Leaves include contribution scheme says Pension Authority in UAE

Leaves include contribution scheme says Pension Authority in UAE

The General Pension and Social Security Authority stated any work-related leaves, paid or unpaid, fall under the contribution period by which the insured is entitled to a pension. The responsibility for payment of pending contributions by insured individuals varies depending on the reason for the leave granted by their employers.

In Accordance with the pension and social security law, the insured individual pays full contributions on behalf of the employer. Both the insured and the employer bear their share of contributions based on the law in the case of a paid leave. The responsibility for the payment of the due amounts may vary depending on the circumstances.

In the case of the Government sector employers, the employee has to bear full contributions due from the insured, while an insured individual working in the private sector bears the overall contributions on behalf of the employer. If the insured is in on external secondment without pay, or on special leaves, they must pay their contributions and the employers.

If an insured employee working in a government sector applied for unpaid study leave, both the employer and the insured individual are obligated to pay their own contributions, whereas, in the private sector, the employee pays the employer’s contributions and his own share.

In internal secondments, if the institution covers the employee’s salary, both the institution and employee must pay their monthly contributions. In the case of sick leave, the insured individual must pay his/her share based on the actual contribution calculation salary received, and the employer is obliged to pay their contribution for the entire contribution of the salary, whether the leave is paid or unpaid.