UAE Social Contributions Guide

GPSSA Pension — UAE Nationals Only

• Total contribution — 20%: The General Pension and Social Security Authority (GPSSA) requires a total pension contribution of 20% of the employee's gross salary. All UAE nationals employed in the private sector or the government sector are covered.
• Employee share — 5%: The UAE national employee contributes 5% of the gross salary. The contribution is deducted at source and remitted to the GPSSA by the employer.
• Government/employer share — 15%: The government (for the public sector) or the employer (for the private sector) contributes the remaining 15% of the gross salary. Certain government entities may share this burden under specific pension schemes.
• Contribution ceiling: The GPSSA contribution is capped at AED 300,000 per year in pensionable salary for the private sector (as of 2026). The public sector pensionable salary ceiling may differ by emirate.
• Pension eligibility: The UAE national becomes eligible for the monthly pension at the age of 60 (men) or 55 (women), with a minimum of 15 years of contributory service. Early retirement is available with reduced benefits after 20 years of service.

For example: a UAE national earning AED 30,000/month contributes AED 1,500/month (5%), and the employer contributes AED 4,500/month (15%) — total AED 6,000/month into the GPSSA pension fund.

Expats — No Social Security

• No social security contributions: The expatriate workers in the UAE do NOT pay any social security or social insurance contributions. There is no mandatory deduction from the salary for the pension, the unemployment insurance, or the disability insurance.
• Optional private coverage: The expats are responsible for their own retirement savings. Many employers offer the voluntary group life insurance, the critical illness cover, and the private medical insurance as part of the employment benefits package.
• No unemployment insurance: As of 2026, there is no mandatory unemployment insurance scheme for expats in the UAE. The "Involuntary Loss of Employment" (ILOE) scheme introduced in 2023 covers both nationals and expats with a small monthly contribution (AED 5 to AED 10 per month) for a limited cash payout for up to 3 months.

Mandatory Health Insurance — Emirates ID

• Dubai Health Authority (DHA) mandate: In Dubai, the employer must provide the health insurance coverage for all employees. The minimum coverage under the "Essential Benefits Plan" (the "EBP") starts at approximately AED 650 to AED 1,000 per year per employee.
• Abu Dhabi mandate: In Abu Dhabi, the employer must provide the health insurance through the "Abu Dhabi Health Insurance Company" (the "DAMAN") or the other approved insurers. The minimum coverage is approximately AED 750 to AED 1,200 per year per employee.
• Emirates ID linkage: The health insurance policy is linked to the Emirates ID. The visa renewal, the residency permit, and the Emirates ID issuance all require the proof of valid health insurance coverage.
• Family coverage: The employer is generally NOT required to cover the employee's family members in Dubai. In Abu Dhabi, the employer must provide the health insurance for the employee's spouse and up to 3 children under 18.

End of Service Gratuity (ESG)

• Calculation — 21 days per year for first 5 years: Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), the employee who completes at least 1 year of continuous service is entitled to the "End of Service Gratuity". For the first 5 years of service: 21 days of basic salary per year.
• Calculation — 30 days per year thereafter: For each year of service beyond the first 5 years: 30 days of basic salary per year. The total gratuity is capped at 2 years of basic salary.
• Basic salary only: The gratuity is calculated on the basic salary only — the housing allowance, the transport allowance, the other allowances, and the commissions are NOT included in the calculation.
• Entitlement by tenure: (a) 1 to 3 years: 1/3 of the full gratuity; (b) 3 to 5 years: 2/3 of the full gratuity; (c) 5+ years: the full gratuity. For example: an employee with a basic salary of AED 10,000/month who served 6 years receives: (Year 1-5: AED 10,000 ÷ 30 × 21 × 5 = AED 35,000) + (Year 6: AED 10,000 ÷ 30 × 30 × 1 = AED 10,000) = AED 45,000.
• DIFC/ADGM different rules: The employees working in the DIFC (Dubai International Financial Centre) or the ADGM (Abu Dhabi Global Market) may be subject to different gratuity rules under the DIFC Employment Law or the ADGM Employment Regulations.

FAQs

Do expats pay any social contributions in the UAE?

No. The expatriate workers in the UAE do NOT pay any social security contributions. The only mandatory payments are the health insurance (required for the visa and the residency) and the small ILOE unemployment insurance contribution (AED 5 to AED 10 per month, optional for some categories).

Can an expat opt out of the End of Service Gratuity?

No. The End of Service Gratuity is a statutory right under the UAE Labour Law. The employer cannot waive it, and the employee cannot contract out of it. However, the DIFC and the ADGM may allow the alternative pension arrangements (the "DIFC Employee Workplace Savings Plan" — the "DEWS") in lieu of the gratuity.

Is the GPSSA pension portable for nationals changing jobs?

Yes. The GPSSA pension account is portable across employers within the UAE. The national may transfer the pension account when changing jobs. The GPSSA also allows the purchase of the previous service years (the "service purchase") to increase the pensionable service.