Latest news with #FederalLawNo.57
Hi Dubai
22-04-2025
- Business
- Hi Dubai
Emiratis Urged to Maintain Continuous Service to Secure Full Pension Benefits
The General Pension and Social Security Authority (GPSSA) has emphasized the importance of continuous and uninterrupted employment for Emiratis to ensure a smooth retirement and access to full pension entitlements. As part of its April 2025 awareness campaign, the GPSSA clarified that the minimum requirement to receive a retirement pension is 15 years of service and reaching the age of 60. However, voluntary resignation comes with stricter criteria—under Federal Law No. 7 of 1999, employees must have completed 20 years of service and be at least 50 years old. Under Federal Law No. 57 of 2023, the threshold increases to 30 years of service and age 55. To maintain pension eligibility, insured Emiratis are advised to merge previous and future employment periods, either through legal provisions or via the "Shourak" programme—available to those who joined the workforce from July 1, 2023. Failure to do so may reset their pension contributions, requiring them to start accumulating service years from scratch. The pension amount is calculated based on service duration. Under Law No. 7 of 1999, 70% of the pension salary is granted after 20 years, increasing by 2% annually up to a maximum of 100% after 35 years. Under Law No. 57 of 2023, the pension is calculated at 2.67% per year up to 30 years, and 4% per year beyond that, with retirees receiving triple pension salaries for every year worked beyond 35 years. GPSSA urges all insured Emiratis to stay informed, plan ahead, and ensure proper documentation to safeguard their retirement future. News Source: Emirates News Agency
Zawya
22-04-2025
- Business
- Zawya
UAE: GPSSA calls on insured Emiratis to merge employment years
Insured Emiratis must ensure their employment years are continuous and uninterrupted and that they have completed the qualifying contribution period in preparation for their retirement years. The minimum period to obtain a retirement pension is 15 years and the insured reaching the age of 60, clarified the General Pension and Social Security Authority (GPSSA) as part of its April 2025 campaign on raising awareness regarding the eligibility criteria's and benefits in receiving a lucrative pension amount once retired. According to Federal Law No. 7 for 1999 an Emirati employee who decides to voluntarily resign, while looking to receive a pension payment, must ensure he/she has completed 20 years of service and has reached the age of 50 to receive a retirement pension. Those subject to the provisions of Federal Law No. 57 of 2023 are required to spend 30 years in service and reach the age of 55. The insured individual must ensure his/her employment/service period is continuous and uninterrupted. This is done through deciding to take advantage of merging previous and subsequent employment years in accordance with the provisions of Federal Law No. 7 of 1999 and Federal Law No. 57 of 2023 or accessing the 'Shourak' programme, which helps facilitates a merge request for those who have entered the labor market starting from 1st July 2023 onwards. If the above-mentioned employer transfer decisions and the merge process timings are not fully met, the insured will be forced to start saving for a pension entitlement from scratch. To avoid such inconvenience, while preserving previous employment years upon completing the minimum eligibility service criteria's the insured can opt to merge employment years, given he/she bears the financial payments that arise because of taking such a decision As per Federal Law No. 7 of 1999, the insured receives 70 percent of the pension account salary once 20 years of service have been proven to be complete. This percentage increases by a further 2 percent for each year the insured spends after the 20 years period and up to 100 percent of the pension amount if employed for 35 years. Federal Law No. 57 of 2023 claims that the insured must spend 30 years in service to obtain a retirement pension. In such case, pension is calculated at a rate of 2.67 percent for each year up to 30 years of service and at the rate of 4 percent for each year exceeding 30 years for up to 35 years of service, which is the period of obtaining the 100 percent of the pension amount, given that the insured is granted three salaries from the pension account for each year spent working after the 35 year period.
Zawya
22-04-2025
- Business
- Zawya
Insured Emiratis requested to merge their employment years to qualify for a lucrative pension amount once retired
Abu Dhabi – Insured Emiratis must ensure their employment years are continuous and uninterrupted and that they have completed the qualifying contribution period in preparation for their retirement years. The minimum period to obtain a retirement pension is 15 years and the insured reaching the age of 60, clarified the General Pension and Social Security Authority (GPSSA) as part of its April 2025 campaign on raising awareness regarding the eligibility criteria's and benefits in receiving a lucrative pension amount once retired. According to Federal Law No. 7 for 1999 an Emirati employee who decides to voluntarily resign, while looking to receive a pension payment, must ensure he/she has completed 20 years of service and has reached the age of 50 to receive a retirement pension. Those subject to the provisions of Federal Law No. 57 of 2023 are required to spend 30 years in service and reach the age of 55. The insured individual must ensure his/her employment/service period is continuous and uninterrupted. This is done through deciding to take advantage of merging previous and subsequent employment years in accordance with the provisions of Federal Law No. 7 of 1999 and Federal Law No. 57 of 2023 or accessing the 'Shourak' program, which helps facilitates a merge request for those who have entered the labor market starting from 1st July 2023 onwards. If the above-mentioned employer transfer decisions and the merge process timings are not fully met, the insured will be forced to start saving for a pension entitlement from scratch. To avoid such inconvenience, while preserving previous employment years upon completing the minimum eligibility service criteria's the insured can opt to merge employment years, given he/she bears the financial payments that arise because of taking such a decision As per Federal Law No. 7 of 1999, the insured receives 70% of the pension account salary once 20 years of service have been proven to be complete. This percentage increases by a further 2% for each year the insured spends after the 20 years period and up to 100% of the pension amount if employed for 35 years. Federal Law No. 57 of 2023 claims that the insured must spend 30 years in service to obtain a retirement pension. In such case, pension is calculated at a rate of 2.67% for each year up to 30 years of service and at the rate of 4% for each year exceeding 30 years for up to 35 years of service, which is the period of obtaining the 100% of the pension amount, given that the insured is granted three salaries from the pension account for each year spent working after the 35 year period. For more information, please contact: Dina El Shammaa Media and Public Relations Senior Specialist E-mail: Website:
Gulf Insider
23-03-2025
- General
- Gulf Insider
UAE Announces End-Of-Service Benefit Rule For Mothers
The UAE has clarified rules for Emirati mothers regarding pensions and social insurance payments. The General Pension and Social Security Authority (GPSSA) has confirmed that under Federal Law No. 57 of 2023, Emirati mothers who wish to take leave from their jobs to look after their children are granted the opportunity to do so for a maximum of three years given that they continue to pay monthly contributions to secure themselves with a lucrative end-of-service benefit. GPSSA highlighted the UAE's commitment to supporting and empowering Emirati women across various fields, including legislation, education, economy, and politics. This dedication reflects the nation's belief in the significant role women play in strengthening and developing the country, a vision established by the late Sheikh Zayed bin Sultan Al Nahyan, who recognised the integral role of women in all aspects of life. The UAE, under its wise and prudent leadership, continues to pursue this approach towards empowering women across all sectors, ensuring their active participation in the nation's progress. In recognition of the traditional roles and societal contributions of working Emirati women, pension laws have been tailored to provide them with certain benefits, as outlined in Federal Law No. 57 of 2023, which offers optional contribution rights for Emirati women. Additionally, special provisions are granted to female breadwinners, particularly in the event of their husband's passing. For example, widows are entitled to merge their pension amounts with that of their deceased husbands. Additionally, UAE Federal Law No. 57 regarding pension and social insurance and its amendments redistributes pension percentages among beneficiaries by raising the widow/s entitlement shares. If the widow has more than one child she receives a 40 per cent pension share, while children (male and female) are entitled to 40 per cent share of the pension; the father or mother or both are entitled to 20 per cent of the pension share. This distribution of shares has raised the widows' percentages at the expense of her children, since she supports them after the decease of the breadwinner. The law has also reduced the age and contribution duration for married, divorced or widowed females with children in the UAE given that they have contributed with the GPSSA for 30 years and reached the age of 55. This has resulted in a reduced two years of contribution payments and three years in age for each of an Emirati mother's fifth and sixth child, and 3.5 years less in contributions and four years for the seventh child. The support towards females was evident prior to Federal Law No. 57 of 2023 as shown in UAE Federal Law No. 7 of 1999 regarding pension and social security and its amendments, which grants women the right to purchase ten years of service, while men are allowed to purchase only five years. The pension law also allows the repayment of the share for each daughter and sister. The pension amount however is immediately suspended in case a daughter gets married, joins an entity due to a divorce or leaves a job, while the son stops receiving pension once he reaches the age of 21 or 28 in case he is still studying, contrary to a daughter who does not stop receiving pension due to age related reasons. If the mother, sister or daughter become widowed or divorced after the decease of the pensioner and neither of them receive an alternative salary or pension, a share is created for them equal to the share amount at the time the pension is due, without prejudice to the shares of the other beneficiaries. Moreover, the law provides equal distribution of pension payments among daughters and sons, with daughters being entitled to the same share amount as sons, since the federal pension law does not consider pension a legal inheritance. Contrary to popular belief, a woman's pension is distributed to her eligible family members, similar to that of a man.
Arabian Business
21-03-2025
- General
- Arabian Business
UAE announces end-of-service benefit rule for mothers
The UAE has clarified rules for Emirati mothers regarding pensions and social insurance payments. The General Pension and Social Security Authority (GPSSA) has confirmed that under Federal Law No. 57 of 2023, Emirati mothers who wish to take leave from their jobs to look after their children are granted the opportunity to do so for a maximum of three years given that they continue to pay monthly contributions to secure themselves with a lucrative end-of-service benefit. GPSSA highlighted the UAE's commitment to supporting and empowering Emirati women across various fields, including legislation, education, economy, and politics. UAE pension policy for mothers This dedication reflects the nation's belief in the significant role women play in strengthening and developing the country, a vision established by the late Sheikh Zayed bin Sultan Al Nahyan, who recognised the integral role of women in all aspects of life. The UAE, under its wise and prudent leadership, continues to pursue this approach towards empowering women across all sectors, ensuring their active participation in the nation's progress. In recognition of the traditional roles and societal contributions of working Emirati women, pension laws have been tailored to provide them with certain benefits, as outlined in Federal Law No. 57 of 2023, which offers optional contribution rights for Emirati women. Additionally, special provisions are granted to female breadwinners, particularly in the event of their husband's passing. For example, widows are entitled to merge their pension amounts with that of their deceased husbands. Additionally, UAE Federal Law No. 57 regarding pension and social insurance and its amendments redistributes pension percentages among beneficiaries by raising the widow/s entitlement shares. If the widow has more than one child she receives a 40 per cent pension share, while children (male and female) are entitled to 40 per cent share of the pension; the father or mother or both are entitled to 20 per cent of the pension share. This distribution of shares has raised the widows' percentages at the expense of her children, since she supports them after the decease of the breadwinner. The law has also reduced the age and contribution duration for married, divorced or widowed females with children in the UAE given that they have contributed with the GPSSA for 30 years and reached the age of 55. This has resulted in a reduced two years of contribution payments and three years in age for each of an Emirati mother's fifth and sixth child, and 3.5 years less in contributions and four years for the seventh child. The support towards females was evident prior to Federal Law No. 57 of 2023 as shown in UAE Federal Law No. 7 of 1999 regarding pension and social security and its amendments, which grants women the right to purchase ten years of service, while men are allowed to purchase only five years. The pension law also allows the repayment of the share for each daughter and sister. The pension amount however is immediately suspended in case a daughter gets married, joins an entity due to a divorce or leaves a job, while the son stops receiving pension once he reaches the age of 21 or 28 in case he is still studying, contrary to a daughter who does not stop receiving pension due to age related reasons. If the mother, sister or daughter become widowed or divorced after the decease of the pensioner and neither of them receive an alternative salary or pension, a share is created for them equal to the share amount at the time the pension is due, without prejudice to the shares of the other beneficiaries. Moreover, the law provides equal distribution of pension payments among daughters and sons, with daughters being entitled to the same share amount as sons, since the federal pension law does not consider pension a legal inheritance.
