“Pensions” applies additional fines to the delay in paying the Gulf subscriptions

The General Authority for Pensions and Social Insurance called on employers to adhere to paying subscriptions for the Gulf citizens working in the state, covered by the unified system for providing insurance protection, which is the system that guarantees civilian citizens from the Gulf Cooperation Council countries, working in any other country of the Council, obtaining the same insurance coverage available to citizens in their countries.

The authority indicated that, from the beginning of this July, it will be applied additional fines to employers who are late in paying the contributions due for their Gulf workers in the state, according to the dates set by the federal pension laws in the state, and that these fines are considered the rights of retirement agencies in the employee’s country.

The contributions are entitled to the beginning of the month for the month due, and they can be paid until the 15th of the month. For example, the payment of the July contributions is allowed during the period from the first of next August to the 15th of the same month, and in the event of delay, a fine is imposed by 0.1% for each day delay, starting from the 16th day, without the need for warning or alert.

This decision comes to activate the provisions of Article 12 of the Law of the Protection System, and in accordance with the outputs of the meeting «23» of the Committee of the Heads of Civil Retirement and Social Insurance Services in the Cooperation Council countries, which obliges the retirement apparatus in the state of work to follow up the late employers when paying subscriptions and taking legal measures to collect them alongside the additional amounts of delay, on behalf of the retirement apparatus in the employee country.

The protection extension system is mandatory, as employers are registered with the Gulf citizens working in the governmental and private sectors, and subscriptions are paid according to the insurance system in the employee’s country, so that their contributions do not exceed the employer’s share in the country, provided that the Gulf citizen bears any differences in the contributions, if any.