Summary

The UAE social security scheme is aimed at providing a limited range of benefits to Emiratis and the nationals of Gulf Cooperation Council (GCC) countries. Expatriates are generally excluded from the scheme.

Details

Contributions

For UAE nationals in the private sector, the contribution rates are 12.5% for the employer, and 5% for the employee, on monthly income between $5,500 and $19,000. For those who joined the scheme after 31 October 2023, the employee contribution is 11%, and the employer contribution 15%, of income between $5,500 and $19,000 per month.

Abu Dhabi imposes a slightly higher contribution rate of 15% (employer) and 6% (employee).

GCC nationals pay the employee rate that is applicable in their home country.

A separate unemployment insurance scheme was introduced in 2023 and applies to both Emirati and foreign workers. Subscriptions are very low, however – at most, $30 per year.

Treaties

The UAE does not have any bilateral social security agreements but its nationals have a degree of protection while working in other GCC states. Expatriates working in the UAE may still, therefore be liable to home country contributions, particularly those from the UK and US. As a result, offshored or local contracts could provide a route to considerable social security cost savings.

Exemptions

With the exception of the mandatory contributions to the unemployment insurance scheme, there is no social security in the UAE for nationals of non-GCC countries.

Administration

Monthly withholdings of social security are paid over to the General Pension and Social Security Authority (GPSSA).

Benefits

Pensions and other contributory benefits are only available to Emirati and GCC nationals. The Unemployment Insurance Scheme can pay compensation to foreigners who are resident in the UAE, providing the monthly premium has been paid for 12 months prior to the claim being made.

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