Latest news with #Shourak
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
27-03-2025
- Business
- Zawya
All you need to know about applying for an end-of-service gratuity with the GPSSA
Abu Dhabi: Employers and insured Emiratis must be aware of the requirements and conditions associated with the service 'Apply for End of Service – Civil.' Through this service employers can submit an end-of-service request for an insured individual registered with the General Pension and Social Security Authority (GPSSA) and initiate the disbursement of the end-of-service gratuity payment (e.g., gratuity amount or monthly pension amount). As part of the prerequisites to access this service, the employer must ensure they are registered and have an account on GPSSA's Employer Portal. Similarly, the insured individual to whom the service pertains, must be registered and have an account with an updated profile on the GPSSA Members Portal. The Authority is the entity responsible for disbursing the end-of-service gratuity which can be done through accessing the service ' Apply for End of Service – Civil' on GPSSA's Ma'ashi platform. Latest records show that 7,663 Emiratis received their end-of-service payments from the GPSSA from January 2024 to December 2024. The basic documents required may vary depending on the specific reasons for termination of service, depending on the insured's situation. For example, in some cases, a court ruling may be required if the service was terminated due to a court decision, or a decision from the Supreme Medical Committee when service was terminated due to unfitness, or other reasons. Once the Authority receives a completed application, the processing time will not exceed 10 working days. End-of-Service Gratuity The insured is entitled to a financial gratuity in accordance with the laws applied by the Authority, based on the number of years of service. The minimum service period required to qualify for a gratuity is one year or more. It should be noted that the insured cannot choose between a pension payment or an end-of-service gratuity if the conditions for either are met. The end-of-service gratuity is calculated on the average contribution salary at the rate of a month and a half average calculation salary for each year of service from one to five years, and an average calculation salary of two months for each year of service from five to ten years, and a three-month average calculation salary for each year of service exceeding ten years. Shourak service for merging previous to subsequent employment years Insured Emiratis employed in both government and private sectors may choose to benefit from the Shourak program, which provides a continuous service period in the event of changing jobs, without the need to incur additional fees. To benefit from the Shourak program however, the insured must notify the employer of his/her choice to refrain from receiving the end-of-service gratuity for the purpose of merging employment years. The must select 'Shourak' instead of ' End of Service – Civil' to complete the request. Shourak does not cover an employment year of less than one year since this period does not qualify for a gratuity. Additionally, the Shourak application could also be cancelled if the insured voluntarily waives the merge request, if the insured person has spent over a period of six months before joining a new job, or if the insured is deceased prior to completing the merge procedures. If an insured passes away before receiving the end-of-service gratuity, the amount is paid to the beneficiaries in accordance with the provisions set forth in the federal pension laws. If there are no beneficiaries, the gratuity is disbursed as per the Islamic Shariah inheritance provision.
