The Ministry details measures for employers failing to pay employee savings contributions.

The Ministry of Human Resources and Emiratisation has outlined four progressive measures that will be applied to employers who fail to remit the basic contribution to the employee savings system for their registered staff.
These measures may lead to the imposition of administrative fines on the employer, totaling AED 1,000 monthly for each beneficiary.
The ministry explained that the process begins with the system sending an electronic written warning to the employer within 30 days of the payment deadline, reminding them to settle the basic contribution within five working days of receiving the notice. Should the payment not be made within 15 days, the manager of the fund will notify the ministry, which may suspend the issuance of new work permits for the employer. This suspension will take effect two months after the employer becomes delinquent in payments, remaining in place until all outstanding contributions are settled. Additionally, other administrative measures may be taken according to existing regulations.
After four months of non-payment, the ministry will impose a monthly administrative fine of AED 1,000 for each beneficiary.
The ministry also mentioned that the savings system provides a minimum of three investment options: a capital guarantee portfolio that involves no risk and ensures capital preservation, which must be adhered to if the employee is from the unskilled labor segment. Risk-based investment options are available across various portfolios with varying levels of financial risk, aligning with expected returns. Furthermore, there are investment funds compliant with Islamic Shariah.
The system is optional for private sector employers, including those in free zones, as well as for employees in those establishments. Registration in the system is also open to certain categories, including self-employed individuals holding freelance work permits, non-citizen employees in government entities and affiliated companies, and citizens working in both public and private sectors, provided the employer continues to make contributions for citizens to the pension and social insurance systems as per applicable laws in the country.