1. Administering Payroll for the United Arab Emirates
  2. GCC Citizens Social Insurance Calculation for UAE

GCC Citizens Social Insurance Calculation for UAE

Social Insurance contributions are calculated and deducted from all employees who have a GCC nationality and are working in any of the GCC countries in accordance with the Unified Law of Insurance Protection Extension.

The Employee Social Insurance card has been enhanced to capture additional info such as:
  • Whether or not it has been agreed that the country of citizenship will pay any difference in contribution amounts.
    Note: Currency Conversion Rate across the country of citizenship and country of employment needs to be considered for SI calculation for GCC citizens working in United Arab Emirates. You must set up conversion rates before processing SI for GCC citizens.
  • For those GCC employees working in the UAE hired before 31st October continue to use the current rates for GPSSA
  • For those GCC employees working in the UAE hired on or after 31st October use the new rates for GPSSA, for DL57
The contributory salary for GCC citizens working in UAE can be set using below balances. The following table illustrates the balances used, and the expected element balance feeds:

Balances used for GCC citizens

Citizenship Sector Balances Notes
Bahrain Government Bahrain Social Allowance Base in Government Sector: User fed with social allowance elements that represent Social Allowance only

Bahrain Employee Government Sector ContributorySalary Base

 A rule to limit social allowance to 150BHD is applied. This is applicable if the contributory salary is derived from either of the contributory salary balances, or from the subject to social insurance balance.
Bahrain Private Bahrain Employee Private Sector Contributory Salary Base

Bahrain Allowance Base in Private Sector: User fed with fixed allowance elements

 A rule to limit fixed allowances to 100% of basic salary is applied. This is applicable if the contributory salary is derived from either of the contributory salary balances, or from the subject to social insurance balance.
Kuwait Government Kuwait Employee Government Sector ContributorySalary Base
Kuwait Private Kuwait Employee Private Sector Contributory Salary Base
Oman Government Oman Employee Government Sector Contributory Salary Base
Oman Private Oman Employee Private Sector Contributory Salary Base
Saudi Government Saudi Employee Government Sector Contributory Salary Base
Saudi Private Saudi Employee Private Sector Contributory Salary Base
UAE Government UAE Employee Government Sector Contributory Salary Base
UAE Private UAE Employee Private Sector Contributory Salary Base

Social Insurance Deductions

Social insurance contribution is calculated through the Social Insurance deduction that is part of the component group Social Insurance. Calculations are done through the element Social Insurance.

Legislative Repository for Calculation Information

Parameters used in the calculation of social insurance are stored in the legislative repository for calculation information. These parameters are predefined by the UAE localization and can't be modified in the implementation phase.