The Ministry of Human Resources and Emiratisation (MoHRE) has issued a clear warning to UAE companies that fail to make monthly payments into the Voluntary Savings System for their employees. The ministry announced a graduated enforcement approach with four levels of disciplinary action against non-compliant employers.
According to the ministry’s official website, companies missing payment deadlines will first receive an electronic notice within 30 days, requiring payment within five business days. If employers don’t respond within 15 days of this warning, the fund manager will alert MoHRE. Companies that remain delinquent for two months will face suspension of new work permit issuance until they clear all outstanding contributions. After four months of non-payment, authorities will impose an administrative fine of Dh1,000 per enrolled employee.
When registering staff in the Voluntary Savings System, employers must select applicable employee categories and register employee details with the investment fund through an administrative service provider. Employers must pay the full contribution amount without deducting from employee salaries and transfer monthly contributions within 15 days from the first of each calendar month.
Employers can request to exit the Voluntary Savings System after one year, subject to MoHRE approval and meeting several conditions. These include completion of at least one year in the system unless exceptional circumstances apply, no outstanding fines or unresolved labor disputes, proof of financial solvency to cover end-of-service benefits, and no negative impact on employee rights.
Upon approved withdrawal, employers won’t receive refunds for contributions already made. Employees can either withdraw their savings when employment ends or continue their investment without additional contributions. For the period following employer withdrawal, end-of-service benefits will follow standard decree-law calculations.
