Considerations for Employee Social Insurance or Pension Fund Details Card for UAE

Consider the following points when entering data in the Employee Social Insurance or Pension Fund Details card.

• Citizenship: Social insurance deductions are processed only for the Gulf Cooperation Council (GCC) citizens. You must specify the citizenship of the employee as the social insurance card will be processed based on this information.
• Method of Obtaining Nationality: This information is used for reporting purposes. The method of acquiring nationality could be by birth, residence, marriage or any other factor.
• Date of Acquiring Nationality: The date of acquiring nationality cannot be earlier than the person's date of birth.
• Exception Type: Social insurance deductions are processed based on the exception type:
  • Employee pays both employer and employee contributions
  • Employer pays both employee and employer contributions
  • Employer pays contribution monthly and employee pays later
    Note: Depending on the selected exception type, the employee or the employer pays the contributions. If no value is specified, then the employer and the employee each pay their contributions
• Registered for Social Insurance: For employees who are Emirati citizens and have their Social Insurance Numbers specified during the new hire process, this checkbox is selected automatically indicating that social insurance calculations must be processed. For employees who are non-Emirati citizens, this checkbox remains unselected indicating that social insurance calculations will not be processed. Employees registered for social insurance are not eligible for gratuity ormonthly gratuity.
• Paid from another Government Sector: Select this checkbox to specify if the employee receives additional pay from another government sector organization. You can select the checkbox by editing the automatically created card.
• Sector or Department Name: This is a free text field. This doesn't affect the social insurance calculation, but used for reporting purposes.
• Exempt from SI Contribution Difference: This checkbox indicates whether to process the difference in the employer's subscription. The employee will normally pay the difference in the contribution unless the flag is set and the Country of Citizenship has agreed to pay the difference on behalf of the employee.
• Country of Citizenship Pension: This checkbox indicates whether or not an employee is receiving a pension from their country of citizenship. This does not affect the social insurance calculation, but used for reporting purposes.
• Pension Authority: This is a free text field to enter the name of the authority paying the pension. This information is used for reporting purposes.
• Date of Retirement: This field captures the retirement date. This information is used for reporting purposes.
• Contribution Bank Account Details: Lists the third-party organizations that will receive the Social Insurance contributions. See Third-Party Organization section.

• Unemployment Insurance: Employees, irrespective of Employer Sector or Social Insurance Fund Type, may be exempt from paying unemployment insurance. If not exempt, they may be able to choose whether unemployment insurance contributions are to be paid by the employer or directly by themselves.
  • Exempt from Unemployment Insurance: This indicator is used to stop the calculation of Unemployment Insurance if the employee is either exempt from paying or have chosen to pay it themselves, outside the payroll process.
  • Unemployment Insurance to be Paid by the Employer: Use this check box to indicate whether the employer is going to pay Unemployment Insurance on behalf of the employee.
    Note: If neither are selected then the employee will pay the Unemployment Insurance through the payroll process, and you can specify an Unemployment Insurance Contribution Override at the component level.