“Pensions”: the private sector contributions according to the January salary of each year

If a worker joined the service in the private sector after January, his contributions are calculated based on the month in which he joined.

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The General Pension and Social Security Authority confirmed that the contributions due from the insured (contributor) are paid in the private sector based on the value of the salary he receives in January of each year without taking into account any increase in the salary during the year, unless this increase applies to the insured Retroactively from the beginning of January of the same year, noting that the payment of these contributions for the insured in the government sector is made according to the salary of the subscription calculation for each month.

The authority clarified that if a worker joined the service in the private sector after January, his contributions are calculated on the basis of the month in which he joined, provided that he is treated in January of the following year according to the principles in force, which is calculating contributions from January of each year, adding The contributions prescribed to the insured in this case are fully calculated for the month in which he joined.

Ibrahim Shukrallah, director of the Government Communications Office at the authority, said that the employer in the private sector must submit to the authority in January of each year a statement of the salaries of his workers for this month and their monthly subscriptions, and that he informs the authority on a monthly basis of any changes that occur, whether with regard to The number of his employees or their salaries, and these data must be identical to the books and records of the employer that he maintains in accordance with the Labor Law, as these data are the reference that is referred to in any inspection process carried out by the Authority to verify the validity of the data received from the employer.

He added that the employer in the private sector must register his workers subject to the provisions of the Federal Pensions Law with the Authority within a month at most from the date of their joining the service, and he must provide the Authority with the names of his employees, whose service ended within a month at most from the date of termination of service. With the assurance that the subscriptions are not due for the part of the month in which their services end.

Shukrallah added that the contributions must be paid at the end of the month due, and it is allowed to pay them until the 15th day of the month following their entitlement, provided that the delay fines are calculated after the middle of the month if they are not paid within the specified period.

He explained that in the event that the employer does not provide the data stipulated in the prescribed terms, conditions and dates, the contributions that must be paid are calculated on the basis of the last statement submitted to the authority.

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