Under Federal Decree-Law No. 57 of 2023, for members registered since 31 October 2023, the national pays 11% and the employer 15%, 26% in total. The government covers 2.5% of the employer share when the contribution salary is below AED 20,000, and earlier members follow Federal Law No. 7 of 1999.
Step by step
- 1
Identify the applicable law
A national who joins the labor market for the first time on or after 31 October 2023 falls under Decree-Law No. 57 of 2023, and earlier members stay under Law No. 7 of 1999.
- 2
Contribution salary
In the private sector it is the wage set in the employment contract, between AED 3,000 and 70,000 a month under the new law and between AED 1,000 and 50,000 under the previous law.
- 3
Rates under the new law
11% on the insured and 15% on the employer, of which the government covers 2.5% for a national whose contribution salary is below AED 20,000.
- 4
Rates under the previous law
5% on the insured, 12.5% on the employer and 2.5% on the government.
- 5
Abu Dhabi
Abu Dhabi has its own pension fund and law, so check its rules for nationals registered with it.
- 6
GCC nationals
They are covered by the GCC insurance protection extension system under their home country's rules, and the employer pays their contributions as it does for UAE nationals.
Applying the new law's rates to a national registered before 31 October 2023 is a common mistake: the first registration date decides the law, the rates and the limits.
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