Pension and end-of-service benefit

There are multiple pension funds in the UAE with various mandates. General Pension and Social Security Authority (GPSSA) is entrusted with providing pension-related services to citizens employed in the federal government entities and the private sector across all the emirates. However, it does not cover citizens working in the public and private sectors in the emirate of Abu Dhabi and in the public sector in the emirate of Sharjah.

Mandatory registration and contribution

Contribution is obligatory for those who are eligible for pension scheme. The employer must register and contribute on behalf of the employee within 30 days of the employee joining the entity.

Terms of contribution to insurance

For the employer to contribute to the pension, the employee:

1. should be a UAE national
2. should not be less than 18 years; nor should he/she be more than 60 years
3. must be medically fit upon appointment according to a medical report provided by a medical authority and approved by GPSSA.

Contribution for employees

According to Federal Law No. 7 of 1999 for Pensions and Social Security and its amendments, a contribution equal to 20 per cent of the employee’s salary must be made to GPSSA on a monthly basis. While the employee must contribute 5 per cent of his/her salary, the employer must contribute 15 per cent of the employee’s salary.

Eligibility for pension

Pension scheme by GPSSA covers aging, disability, death, work and occupational illnesses. Additionally, as per Article 16 of the federal pension law, an employee is entitled to pension if:

1. he completes 20 years of service and
2. is at least 50 years of age.

Additionally,

• The amount of pension increases by 2 per cent for every year the employee works after 20 years of service until he completes 35 years of service.
• When an employee completes 35 years of service, he qualifies to get a pension equal to his salary.
• When an employee exceeds 35 years of service, he will get pension equal to salary of three months for each year.

End-of-service benefit

If an employee has not completed 20 years of service, he/she will receive end-of-service benefit.

If an employee resigns voluntarily before he/she retires, he/she should have worked for 19 years and 11 months to become eligible for the end-of-service benefit.

Useful links from GPSSA:

• Frequently asked questions
• Digital services
• Latest news
• Follow GPSSA on: Instagram, Twitter, Facebook and YouTube.

*Text provided by GPSSA.

Abu Dhabi pensions

In Abu Dhabi, Abu Dhabi Retirement Pensions and Benefits Fund manages pensions on behalf of Abu Dhabi-based and employed UAE nationals. However, it does not manage pensions for GCC nationals and this responsibility lies with GPSSA.

In addition, the emirate of Abu Dhabi has a separate pension law; Law No. 2 of 2000 regarding Civil Retirement Pensions and Benefits in the Emirate of Abu Dhabi (PDF, 500 KB).

For more information about ADRPF, refer to:

• Annual reports
• Strategic Plan
• Services improvements and announcements.

Retirement rules of Dubai Government

H. H Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Decree No. 21 of 2017 approving the retirement and pension procedures applicable to Dubai government employees. The decree aims to ensure equal opportunities for Dubai government employees and further protect the rights of pensioners.

According to the decree, Dubai government human resources department (DGHR) will form a committee to evaluate the retirement requests of employees. A representative of DGHR will chair the committee. The committee is composed of representatives from Dubai's Department of Finance, the General Secretariat of Dubai Executive Council and the General Secretariat of Dubai's Supreme Legislation Committee.

The decree also defines retirement procedures. Pursuant to the decree, Dubai government entities must refer their employees' retirement requests to DGHR. The application must clarify the reasons for retirement and provide all the required information and documents and meet any other requirements set by the committee. The government entity is responsible for completing the application, satisfying the requirements and completing the documents prior to submission to the committee.

DGHR is responsible for following up the committee's recommendations, including referring its recommendations to the General Secretariat of Dubai's Supreme Legislation Committee to issue the required legislation prior to submission to His Highness the Ruler for final approval.

Related links

• Pensions and Social Security- Dubai Government Human Resources Department

Pension for GCC nationals

A GCC citizen who works in another GCC country, has the right to enjoy pension in the same ways as he/she would enjoy if working in his/her own home country. He/she is eligible to receive pension as per the respective law of his/her country. Register GCC nationals in the Insurance Protection Extension Program, in coordination with GPSSA.