UAE-based public pension fund General Pension and Social Security Authority (GPSSA) has been assigned to implement the system of extending insurance protection for Emirati’s working in the GCC region as well as for GCC citizens working in the Emirates.
According to the reports, the Supreme Council of the Gulf Cooperation Council (GCC) decided in December 2004 during its 25th session in the Kingdom of Bahrain to provide the social insurance protection system to GCC citizens working in other countries.
Hanan Al Sahlawi Executive Director Pensions Sector – GPSSA
“A Gulf citizen who works in any of the GCC countries has the right to enjoy social insurance protection as if he or she is working in their own home country. The Arab Gulf states are known for their strong historical ties and cultural homogeneity that unifies their people. Leaders of the Gulf Cooperation Council have strengthened those ties through the establishment of economic, political and social entities.”
The UAE began implementing the system of expanding social insurance protection on 1 January 2007 under law No.18, which was issued by the UAE Council of Ministers.
“Under the unified system for extending the protection, GCC citizens working in any of the GCC countries provided that the provisions of the Pensions and Social Security Law in their country applies to them. This includes employers across public and private sectors and their insured. As a result, the insured will receive the end of service benefits in accordance with the retirement law in his/her own country,” noted Ms. Al Sahlawi.
She remarked that the provisions of the civil retirement law also include workers in free zones as well as in the hotel and tourism sector.
Ms. Al Sahlawi further added that the social insurance protection law is mandatory and that failure to comply with it by failing to register businesses will result in additional fines, which must be paid in addition to the sue contributions.
