Emarat Pension Contribution (Employer Charges) and Employee Contribution (Social Insurance

Deductions) UAE Citizen

Scenario1: Citizenship of the person by birth is UAE, added the acquiring nationality date and Exception type
“Employee pays both contribution” and check the field “Registered for social insurance and Pension” in
calculation card.

Run payroll for pay period 3 2024.

Pension is deducted when defining the field “Acquiring nationality date” and “Exception Type” and “Registered for social
insurance and Pension” in Calculation Card
Scenario2: Citizenship of the person by birth is UAE, added the acquiring nationality date and Exception type
“Employee pays both contribution” and tick the field “Registered for social insurance and Pension” in
calculation card, but employee is terminated in mid of the month.

Run payroll for Pay Period 3 2024

Pension is not deducted when defining the field “Acquiring nationality date” and “Exception Type” and “Registered for
social insurance and Pension” in Calculation Card, if employee’s payroll relationship is terminated in the month.
Scenario3: Citizenship of the person by birth is UAE, added the acquiring nationality date and Exception type
“Employee pays both contribution” and tick the field “Registered for social insurance and Pension” in
calculation card, but employee is terminated in end

of the month.

Pension is not deducted when defining the field “Acquiring nationality date” and “Exception Type” and “Registered for
social insurance and Pension” in Calculation Card, if employee’s payroll relationship is terminated in the month. If
termination date is end of the month then full contribution is deducted.
Scenario4: Citizenship of the person by birth is UAE, added the acquiring nationality date and Exception type
“Employee pays both contribution” and check the field “Registered for social insurance and Pension” in
calculation card. - Mid- Month Joiner. (Person Number: 5432)

Run Payroll for Pay period 3 2024

Pension is deducted as per the prorated amount. Prorated amount = Amount*Actual days/Days in period.
Scenario5: Citizenship of the person by birth is UAE, added the acquiring nationality date and Exception type
“Employee pays both contribution” and check the field “Registered for social insurance and Pension” in
calculation card and change in Previous Month Salary.

Recalculate Retroactive changes for Pay Period 4 2024

Basic Salary Retro Amount is 5260.28 AED
Calculation
Salary from 15/03/2024-31/03/24 is 4,80,000 AED annually.
So amount paid before is 22,356.04 AED.
Salary changes on 16/03/24 is 6,00,000 AED annually.
So amount paid from 16/03/24 to 31/03/24 is 26,301.36 AED.
Now subtract these two amount you will get 3,945.21 AED.
Now add one-day salary of 15/03/24 into this i.e. 1315.07
So total Retro amount will be 5,260.28 AED.
SOE for this case

Retro Amount should get paid along with current month payroll
Scenario6: Citizenship of the person by birth is Non- UAE, added the acquiring nationality date and Exception
type “Employee pays both contribution” and check the field “Registered for social insurance and Pension” in
calculation card.