GPSSA Contributions 2026: UAE Employer Payroll Guide

• 17 August, 2026
• By Safwan, Managing Partner
• Compliance

Last reviewed 17 August 2026 by the Exiloz tax team against the UAE legislation in force on that date. Tax law moves — confirm any figure against tax.gov.ae before you act on it.

The fine starts the day after the 15th. No warning.

Miss the 15th and the fine starts the next day at 0.1% of the outstanding amount, every day, with no warning letter. For UAE-national staff, GPSSA pension contributions are not optional and not the same as your WPS salary transfer. The total is 26% of the contribution-account salary: 11% from the employee, 15% from the employer, under Federal Decree-Law No. 57 of 2023. This is a 2026 employer payroll guide to GPSSA contributions: the split, the deadline, the penalty, and how GPSSA sits apart from WPS and Emiratisation.

Here's the part that surprises new employers. GPSSA is not deducted through your bank transfer and not handled by your WPS file — it is a separate pension contribution you calculate, withhold and pay to the fund each month for every UAE-national on your payroll. Get one national wrong and the fine lands automatically.

GPSSA is not WPS, and it's not Emiratisation

These three get muddled constantly, so keep them clean. WPS is how you transfer salaries through an approved bank so the Ministry can see staff were paid. Emiratisation is a hiring quota — the target share of UAE nationals in your workforce. GPSSA is the pension: a monthly contribution on your Emirati employees' salaries, split between them and you. WPS proves payment. Emiratisation counts heads. GPSSA funds the pension. You can be fully WPS-compliant and still be penalised for a missed GPSSA payment.

The split: 26% of the contribution-account salary

Under Federal Decree-Law No. 57 of 2023, in force from 2 October 2023, the total monthly contribution is 26% of the contribution-account salary: 11% from the employee and 15% from the employer. For new hires the employee share rose from the old 5% to 11%, so budget the higher number for anyone joining after the law took effect.

What is the 'contribution-account salary'?

This is the base the 26% is calculated on, and it is defined — usually basic salary plus set allowances named in the contract, not the full gross and not just basic. It carries a floor and a ceiling, so a very high earner's contribution is capped rather than charged on the whole package. Getting this base wrong is the quiet error we see most: contribute on gross and you overpay; contribute on basic alone and you under-fund and risk a shortfall fine.

A worked example: AED 20,000 salary

Take a UAE-national employee whose contribution-account salary is AED 20,000 a month. The employer pays 15% = AED 3,000. The employee's 11% = AED 2,200 is withheld from salary. Together, AED 5,200 goes to GPSSA that month. Now pay it ten days late: the fine is 0.1% of the outstanding AED 5,200 per day, about AED 5.20 a day, so AED 52 for ten days, with no reminder and no grace. Small on one salary. Multiply it across a payroll of nationals and a habit of paying late, and it adds up fast.

The deadline and the fine

Contributions are due by the 15th of each month. Pay after that and GPSSA applies 0.1% of the outstanding amount per day, automatically, with no prior warning. There is no invoice reminding you and no informal grace period — the clock simply starts on the 16th. Diarise the run for the first week of the month, not the deadline, so a weekend or a bank holiday never pushes you over.

How to run it in payroll

1. Flag every UAE-national employee and register them with GPSSA from their start date.
2. Define the contribution-account salary correctly — it is a specific figure, not necessarily gross pay.
3. Withhold 11% from the employee and budget the 15% employer cost into payroll.
4. Pay the full 26% by the 15th, ideally in the first week to leave a buffer.
5. Reconcile monthly and keep GPSSA separate from WPS and Emiratisation tracking. Our payroll and WPS team runs all three.

Common mistakes

Frequently Asked Questions