ahlan hamad

difference between UAE and Oman social insurance deductions

UAE vs Oman social insurance — what each country deducts 1:04 min

Watch on YouTube

Transcript

Mariam is Emirati. Her deduction column is not short. Social insurance: a slice of pay, sent to a state pension fund. In the UAE the fund is GPSSA. It covers nationals. Her contributable wage is thirty thousand, not twenty. The UAE levies on the whole package. Housing and transport included. Eleven percent from her. Fifteen from her employer. There's a ceiling. Nothing above seventy thousand is contributory. Farid is an expatriate. In the UAE, he isn't in the scheme. Now the same question, one country away. Eight percent from him. Thirteen and a half from his employer. Oman charges basic salary only. His allowances sit outside it. Apply the UAE's rule in Oman and you take 19.200 too much. Every month. From every Omani on your payroll. You didn't look any of this up. It was already right.

Frequently asked questions

Which wage does the UAE levy social insurance on?

The whole package — housing and transport included — so a national earning twenty thousand basic can have a contributable wage of thirty thousand. Eleven per cent comes from the employee and fifteen from the employer, with nothing above seventy thousand contributory.

Does Oman use the same wage base?

No. Oman charges on basic salary only, with allowances outside it — eight per cent from the employee and thirteen and a half from the employer. Applying the UAE's rule in Oman over-deducts every month from every Omani on your payroll.

Are expatriates in the scheme?

In the UAE an expatriate is not in the scheme, so the deduction does not apply. The engine applies each employee's own country and nationality rules without anyone looking them up.

Watch next: Hide salaries from staff who run payroll admin — the Privacy Wall

Get early access in United Arab Emirates

All AhlanHamad tools for United Arab Emirates