Latest news with #FederalLawNo.7
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
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.
Gulf Today
20-03-2025
- General
- Gulf Today
Law grants Emirati mothers 3 years conditional leave from job to look after their children
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, Federal Law No. 57 regarding pension and social insurance and its amendments redistributes pension percentages amongst beneficiaries by raising the widow/s entitlement shares. If the widow has more than one child she receives a 40% pension share, while children (male and female) are entitled to 40% share of the pension; the father or mother or both are entitled to 20% 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 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 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 amongst 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. WAM
Al Etihad
20-03-2025
- General
- Al Etihad
Law grants Emirati mothers optional contribution rights for childcare: GPSSA
20 Mar 2025 12:35 ABU DHABI (WAM) 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 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 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 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 Federal Law No. 57 regarding pension and social insurance and its amendments redistribute pension percentages amongst beneficiaries by raising the widow/s entitlement shares. If the widow has more than one child she receives a 40% pension share, while children (male and female) are entitled to 40% share of the pension; the father or mother or both are entitled to 20% of the pension share. This distribution of shares has raised the widows' percentages at the expense of her children since she supports them following the death of the law has also reduced the age and contribution duration for married, divorced or widowed females with children 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 Emirati mother's fifth and sixth child, and 3.5 years less in contributions and four years for the seventh support towards females was evident prior to Federal Law No. 57 of 2023 as shown in 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 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 the mother, sister, or daughter becomes widowed or divorced after the decease of the pensioner and neither of them receives 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 the law provides equal distribution of pension payments amongst 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.
Al Etihad
12-03-2025
- Business
- Al Etihad
GPSSA clarifies conditions for Emiratis purchasing service years for early retirement
10 Mar 2025 11:28 ABU DHABI (WAM) The General Pension and Social Security Authority (GPSSA) said that insured Emiratis who wish to receive a lucrative pension rate and retire early may revert to purchasing inactive service years in addition to their actual employment period, as per federal pension service 'Purchase of Service Years' differs from one federal law to another. According to Federal Law No. 7 of 1999 regarding pension and social security and its amendments, the insured must have spent 20 years employed in an Federal Law No. 57 of 2023 (whose provisions apply to those joining employers for the first time after the October 31, 2023), the insured must have served not less than 25 actual service years when submitting the purchase request or 15 years if the insured has reached the age of Federal Law No. 7 of 1999, males can purchase up to five additional service years, while females can purchase up to ten. Notably, Federal Law No. 57 of 2023 limits the purchase period to five years for both percentage granted by each purchased service year varies in accordance with the pension laws applied by the GPSSA. While purchased years grant an insured male or female an increase of two percent in accordance with Federal Law No. 7 of 1999, an increase of 2.67 percent is granted to employees whose contribution period is from 25 to 30 for the pension calculation scheme in Federal Law No. 57 of 2023, the insured receives four percent for each year employed that exceeds 30 than the period required for the purchase of service years, the maximum length of service that can be purchased, and the percentage increase per year, there are no fundamental differences in the purchase rules between the two the total service period qualifying an individual for the maximum pension must not exceed 35 costs are calculated based on the contribution account salary on the date of submitting the request, multiplied by 20 percent, which is the percentage of contributions received by the employer and the insured for the purchased period, multiplied by the period to be purchased in example, under Federal Law No. 7 of 1999, if an insured person earns Dh20,000 and wishes to purchase five years, the cost is Dh20,000 x 20% x 60 months = Dh240, Federal Law No. 57 of 2023, the cost is calculated by multiplying the contribution account salary by 26 percent and the period to be purchased in the same salary example, the cost for five years would be Dh20,000 x 26% x 60 months = Dh312, be eligible to purchase service years, the insured must be employed. If the service period ends without paying the full purchase cost, the purchased years are calculated based on the amounts actually paid. If the insured is deceased before completing payment, the instalments will continue to be collected from their heirs.
