Social Insurance Calculation for UAE

Social insurance is applicable to all Gulf Cooperation Council (GCC) citizens who work in the UAE, and are paid there. This contribution is paid both by the employer and the employee.

Note: All Abu Dhabi based private employers and the majority of government sector organizations are under the authority of the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF).

Contributions are calculated as percentages of a contributory salary. The contributory salary components are elements like basic compensation, accommodation and transport allowances. The legislation determines which elements are liable to social insurance contributions, whereas the amounts and definitions of the same depend on the employer’s regulations.

The contributory salary is dependent on the fund type and sector and can be based on:

An agreed, fixed, amount, using Social Insurance Contributory Salary Override.
A user defined formula subject to rules on citizenship.
On the actual amount earned.
- These elements are identified through secondary classification and feed the balance Subject to Social Insurance.

Whichever way the contributory salary is calculated, if the contributory salary is to be a fixed amount, it will be set once a year, in the first payroll run of the year. For new hires, the contributory salary could be prorated, and the prorated salary would be the fixed contributory salary for the rest of the year.

To amend the calculated, fixed, contributory salary in the first payroll run of the year use Social Insurance Contributory Salary Override, with the expected monthly amount to be used.

To amend the calculated, fixed, contributory salary in any other payroll run of the year use Social Insurance Contributory Salary Adjustment, with the difference between the current monthly amount and the expected monthly amount to be used. This can be negative.

Note: As minimum and maximum limits need to be applied for those under the authority of ADRPBF from the first payroll run, the full monthly amount, before any proration, needs to be available. Use Social Insurance Contributory Salary Override to enter the full period contributory salary to ensure that when the contributory salary is prorated the correct minimum and maximum limits are applied.

Private Sector and Government Sector Calculations

General Pension and Social Security Authority (GPSSA)		Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF)		Sharjah Social Security Fund (SSSF
Private Sector	Government Sector	Private Sector	Government Sector	Private Sector	Government Sector
Minimum Monthly Contributory Salary: 1000 AED	NA	Minimum Monthly Contributory Salary: 6000 AED	NA	Minimum Monthly Contributory Salary: 4000 AED	NA
Maximum Monthly Contributory Salary: 50000 AED	Maximum Monthly Contributory Salary: 300000 AED	Maximum Monthly Contributory Salary: 200000 AED	NA	Maximum Monthly Contributory Salary: 70000 AED	NA
Employee Contribution: 5%	Employee Contribution: 5%	Employee Contribution: 5%	Employee Contribution: 5%	Employee Contribution: 5%	Employee Contribution: 5%
Employer Contribution: 12.5%	Employer Contribution: 15%	Employer Contribution: 15%	Employer Contribution: 15%	Employer Contribution: 15%	Employer Contribution: 15%

Nafis Social Insurance Subsidy

With this enhancement, you can calculate the amount you’ve paid in social insurance contributions, that may be subsidized by the Nafis scheme.

The Nafis SI scheme is applicable to UAE citizens:

Working in the private sector from 13th September 2021.
Registered with GPSSA or ADRPBF.
Having contributory salary less than 20,000 AED each month including overrides or adjustments.

The subsidy calculations are based on the same contributory salary as used for the GPSSA or ADRPBF contributions, including absences such as sick leave or unpaid leave, and will be initiated by the social insurance or pension fund element.

If eligible the subsidy for employees is the full amount originally deducted, whereas for the employer the subsidy reduces every year, and doesn’t include the 2.5% private sector subsidy.

Eligibility ends for both employees and employers no later than 5 calendar years after the date of starting private sector employment, or when the contributory salary exceeds 20,000 AED per month.

If the employer subsidy received from Nafis doesn't match the calculated employer subsidy amount then you’ll need to query this with Nafis:

If the calculated amount is correct, Nafis will need to adjust payments to you.
If Nafis is correct, you need to make a balance adjustment to the calculated employer subsidy amount.
If Nafis has sent subsidy amounts before the Nafis subsidy was processed in payroll, you may want to initialize the delivered balances.

Use the delivered information elements Employee Nafis Social Insurance Subsidy and Employer Nafis Social Insurance Subsidy and the related balances Employee Nafis Subsidy and Employer Nafis Subsidy to accurately calculate the Nafis subsidy.

The Employee Social Insurance or Pension Fund Details calculation card now includes a new attribute Date of Starting Private Sector Employment to accurately capture whether the employee started working in the private sector after 13th September 2021.

Calculation Value Definitions: Use the delivered calculation value definitions to accurately calculate the Nafis subsidy.

Name	Calculation Type
Nafis Employee Subsidy	Flat Amount
Nafis Employer Subsidy	Flat Amount
Nafis Subsidy Maximum Salary	Flat Amount
Nafis Eligibility Date	Date
UAE Minimum Salary in Private Sector	Flat Amount
UAE Minimum Salary for Pension in Private Sector	Flat Amount