The General Authority for Pensions and Social Insurance announced that the extension period for October and November 2024 contribution payments has ended.

This is the same circular that the authority used to announce that employers would not be responsible for any additional costs resulting from October and November contribution payment delays.

Follow up on subscription payments

In order to prevent any additional sums from resulting from payment delays past the designated dates, the authority advised the employers to follow up on the payment of contributions.

Number of invoices issued to active employers

The total number of invoices issued to active employers from the "pension" platform was 15,441 in October 2024, according to statistics on bills for payment of contributions to employers. Of these invoices, 13,334 were approved by employers, meaning that the approval rate was 86.3%, and 12,870 were paid, meaning that the repayment rate was 83.3%.

According to statistics for November 2024, there were 15,359 invoices issued by the platform for the payment of subscriptions for active business owners; 13,544 of these invoices were approved by employers, meaning that the approval rate was 88.1%; and 12,998 of these invoices were paid, meaning that the repayment rate was 84.6%.

The authority clarified that according to the law, contributions are due from the first month after the month in question and may be extended until the fifteenth day of this month. The additional amounts resulting from the payment delay will be 0.1% of the contributions due for each day of delay without prior notice or warning.

She cited federal law No. 7 of 1999's 20% contribution rates for pensions and social insurance and its amendments, the 5% insured employee proportion in the public and private sectors, the 15% employer percentage, and the 2.5% government-borne employer percentage in the private sector to support the citizens employed there and encourage employers to hire them.

Decree-Law No. 57 of 2023 on pensions and social insurance states that 26% of contributions are due to new hires who entered the workforce after October 31, 2023, and did not have an insurance record with the Pension Authority. Whether they work for the government or the private sector, the insured bears 11% of the contributions and the employer bears 15%, while the government bears 2.5% of the employer's percentage for private sector employees whose contribution account salaries are less than 20,000 dirhams.