HZLegalArticle 2: Scope of Application under Federal Law by Decree No. (57) of 2023

Introduction:

Federal Law by Decree No. (57) of 2023 concerning Pension and Social Security in the UAE sets out specific criteria determining who is covered by its provisions. Understanding the scope of application is essential for employers and employees to ensure compliance and benefit from the protections provided under this law.

Scope of Application: Who is Covered?

1. General Applicability:

   • The law applies to all nationals who are employed by an employer covered under this decree. This includes individuals working in both the public and private sectors.

2. Public Sector:

   • The law is applicable to federal government agencies, public bodies, institutions, and public companies. Additionally, local government agencies in the Emirates that opt to be included under this law are also covered.

3. Private Sector:

   • Private sector employers who hire national employees are required to comply with this law. This includes any natural or legal persons who engage national workers in exchange for wages.

4. International Missions:

   • The law extends to regional and international missions as well as foreign political missions operating within the UAE, ensuring that national employees working in these entities are also covered.

Exemptions:

1. Existing Insured Individuals:

   • Nationals already covered under the provisions of Federal Law No. (7) of 1999 concerning pensions and social security are exempt from this new decree. This includes Pensioners and those who have already received end-of-service gratuities under the previous law.

2. Pensioners:

   • Individuals who are already receiving pensions under the older law or any preceding law remain under the coverage of those legislations, even if they take up new employment with an employer covered under the new decree.

Key Considerations:

• Employee Registration:

Employers are responsible for ensuring that all eligible employees are registered with the General Pension and Social Security Authority (GPSSA) within the stipulated time frame.

• Employer Obligations:

Employers must comply with the rules and guidelines set by the GPSSA, including the accurate calculation and timely payment of contributions on behalf of their employees.

Conclusion:

The scope of application under Federal Law by Decree No. (57) of 2023 is comprehensive, covering various sectors and ensuring that national employees are protected under the UAE’s pension and social security system. It’s vital for both employers and employees to be aware of the coverage and exemptions to fully benefit from the provisions of this law.

For further details, consult the full text of the law or seek legal advice to ensure compliance and understanding.