What is Abu Dhabi Pension Fund (ADPF)?
By Law No (2) 2000, the Fund represents a government institution charged with managing the contributory pension, end-of service benefits, and retirement provision of nationals working in the emirate’s public as well as private sectors. It has a great stake in the future of the residents through sustainable pension systems along with transparent governance.
Mission Vision
The mission of the Fund has been to secure retirement income for future generations while promoting good governance and transparency. This is done by supporting government aspirations through advisory services on pension legislation as well as workforce planning and economic development.
Key objectives include:
- Collecting contributions to ensure a stable retirement system.
- Building a knowledge-based economy by offering data-driven insights.
- Maintaining transparency in managing investments.
- Promoting customer happiness through innovative and proactive services.
Who Must Register with ADPF?
Employers with UAE nationals on their payroll are required to register both their company and Emirati employees with the Abu Dhabi Pension Fund (ADPF). In compliance with Emiratisation guidelines, businesses with 20 or more employees must hire Emirati workers and ensure their registration with ADPF.
Emiratisation and Compliance
What is Emiratisation?
Emiratisation is a key UAE government initiative aimed at increasing the employment of UAE nationals in the private sector, ensuring their contribution to the national economy. The goal is to achieve 10% Emirati employment in the private sector by 2026, with a commitment to raise this percentage by 2% annually.
Emiratisation Quota System
To meet Emiratisation targets, a quota system has been introduced for private sector companies with 20 or more employees. Here’s the breakdown of the requirements:
- 2% for Commercial Entities
- 4% for Banks
- 5% for Insurance Companies
Employers who fail to meet their quota will be subject to an AED 6,000 monthly fine for each Emirati employee not recruited.
Registration Requirements
If your company employs UAE nationals, it is mandatory to register both the company and its Emirati employees with the Abu Dhabi Pension Fund (ADPF). Registration ensures compliance with Emiratisation goals and secures employee benefits.
For businesses in Dubai, pensions are managed by the General Pension and Social Security Authority (GPSSA), which also oversees GCC nationals across the UAE.
Contribution Rates and Limits
Employers must register employees within 30 days of receiving their Labour Card. Contributions are structured as follows:
New Employees (Active Members) (Start Date: On or after 1 December 2023):
- Employee: 11%
- Employer: 15%
Existing Employees (In-Service Members) (Previously Registered):
- Employee: 5%
- Employer: 15%
Salary Contribution Limits:
- New Employees: Up to AED 100,000.
- Existing Employees: Up to AED 150,000.
The total contribution is debited from the employer’s bank account, with arrangements between the company and employees on returning the employee’s share.
Documents required for a company to register with ADPF?
- Official Request Letter from your company to the Abu Dhabi Retirement Pensions & Benefits Fund.
- Power of Attorney (POA) for the authorized signatory.
- Valid Trade Licence Copy.
- MOA (for LLCs) or National Service Agent Agreement (for foreign branches).
- Signature Proof of the company’s authorized signatory (if available).
- Passport, Emirates ID, and Residence Visa of the authorized signatory (if applicable).
- Direct Debit Form (issued once the company’s portal username is activated).
- Bank Account IBAN Details for direct debit transactions.
Additionally, provide the contact details (Mobile Number, Emirates ID, Email) for key company personnel:
- General Manager
- HR Manager
- Finance Manager
Once these documents are submitted, a username will be created, allowing the registration process to continue smoothly and the Direct Debit Form to be obtained.
How Plus UAE Can Help
At Plus UAE, we specialize in streamlining the registration process for businesses. We offer:
- End-to-End Registration Support: Assistance with document preparation, submission, and approvals.
- Compliance Services: Ensuring your business meets Emiratisation and pension regulations.
- HR Support: Help with workforce planning and employment policies.
- Ongoing Portal Maintenance: Keeping your company’s registration up to date