4/1/24, 11:09 AM General Pension and Social Security Authority announces issuance of new Federal Decree Law on Pension

       ‫العربية‬

New user Login

Home Page

General Pension and Social Security Authority announces issuance of new Federal
Decree Law on Pension

17 November 2023

• New law applies to new UAE Nationals joining for the first time
the labour market from the law’s publishing date onward in the entities
subscribed to the Authority
• The law preserves current employees’ acquired rights as the
Federal Law No. (7) of 1999 on Pension and Social Security will continue
to cover those participating in it, even if they left their job and returned
to new employment.

Key provisions of the new law:

• Raising the maximum contribution account salary for UAE

nationals working in the private sector from (50) thousand to (70)
thousand dirhams.
• Pension is calculated for both government and private sectors
based on the average monthly contribution account salary according to
the last (6) years of services.
• 7 cases of the insured’s entitlement to a retirement pension.
https://gpssa.gov.ae/en/Pages/NewsDetail.aspx?newsId=492#/#/ 1/5
4/1/24, 11:09 AM General Pension and Social Security Authority announces issuance of new Federal Decree Law on Pension

• The insured woman who is married, divorced, or widowed may

request retirement pension, where the minimum age and the
subscription period may be reduced if she is a mother of (5) children
and above.
• Identifying the minimum age of the insured to be (55) years and
the subscription period to (30) years for the insured to be eligible for
retirement pension.
• The pensioner from the government sector or private sector,
whose subscription period has reached (30) years has the right to
combine the pension with a salary from a new job.
• The monthly contribution for the insured is (26%) of the
contribution account salary, of which the insured bears (11%), the
employer bears (15%), and the government bears (2.5%) of the private
sector employer’s share for the working UAE national whose monthly
contribution is less than (20,000) dirhams, as a motivation to employ
more UAE nationals.
• The insured who wishes to take unpaid leave (to pursue
postgraduate studies, or the mother to care for her children) are
allowed to maintain the subscription in the pension for the period of
their leave in accordance with the terms and conditions set by the
Authority.

UAE, November 17 , 2023- The General Pension and Social Security

Authority (GPSSA) has announced the issuance of the new Federal
Decree Law No: (57) of 2023 on Pension and Social Security. The new
law aims to improve the policies of the GPSSA and its work system, to
ensure the efficiency and sustainability of the financial resources of
pensions, and to honor the Authority’s future commitments. It also
aims to enhance the flexibility of the pension and social security
services in the UAE, and to mitigate any gaps in services and policies
provided to the UAE nationals working in the government and the
private sectors. Moreover, the Law will bring further equality in
insurance benefits to encourage UAE nationals to join private sector
companies.

The new Federal Decree Law will be applied to Emirati employees who
joined the labour market for the first time from the date of its
publication onward in organizations participating at the GPSSA. Current
employees’ participants will continue to be covered by the provisions of
the current Federal Law No. (7) of 1999 on Pension and Social Security.
The pensioner who is receiving a pension in accordance with the
provisions of Federal Law No. (7) of 1999 referred to or any previous
law shall also continue to be covered by the current law. The insured

https://gpssa.gov.ae/en/Pages/NewsDetail.aspx?newsId=492#/#/ 2/5
4/1/24, 11:09 AM General Pension and Social Security Authority announces issuance of new Federal Decree Law on Pension

person who has received an end-of-service bonus in accordance with

the provisions of Federal Law No. 7 of 1999 or any previous law, will
continue to be covered by the current Federal Law No. (7) of 1999,
even if they started a new job after the issuance date of the new
Federal Decree Law No. (57) of 2023.

The monthly contribution for the insured is defined in (26%) of their

contribution account salary, the insurer bears (11%) of the insured’s
contribution account salary, the employer bears (15%) of the insured’s
contribution account salary, and the government bears (2.5%) of the
private sector employer’s share for working Emirati nationals whose
contribution account salary is less than (20,000) dirhams, to encourage
recruiting UAE nationals in the private sector.

To unify general rules between government and private sectors, the

pension calculation mechanism is determined based on the average
contribution account salary of the last six (6) years of subscription
period (or, if less, the entire contribution period) for employees of both
government sector and private sector.

In accordance with the provisions of the new Decree Law, the insured
employee is authorized to consolidate previous periods of service, for
any employer to whom this Decree Law is applied, to their total
pension. The insured can also consolidate the period of service prior to
acquiring the nationality of the UAE, and the periods of prior service in
any entity approved by the UAE Cabinet at the suggestion of the
Authority's Board of Directors.

The minimum age for the insured person to be entitled for a

retirement pension is 55 years, with a minimum subscription period of
30 years. In support of the family’s vital role in society, the new Law
grants working mothers’ more flexibility and benefits. It stipulates that
the working mother can apply for retirement pension entitlement in
younger age and shorter subscription period. She is also authorized to
maintain her optional subscription if she has chosen to take leave to
care for her children, in accordance with the terms and conditions. The
new Law authorizes the insurer to benefit from optional subscription in
case they requested an unpaid leave to pursue postgraduate study.

The monthly subscription salary for the government sector consists of

the basic monthly salary of the insured person, in addition to the
monthly allowances, including: the cost-of-living allowance, the social
allowance for children, the social allowance for UAE nationals, and the

https://gpssa.gov.ae/en/Pages/NewsDetail.aspx?newsId=492#/#/ 3/5
4/1/24, 11:09 AM General Pension and Social Security Authority announces issuance of new Federal Decree Law on Pension

housing allowance, provided that the value of insured’s contribution

account salary should not exceed (100,000) dirhams; however, in the
private sector, the wage is determined by the employment contract,
provided that the monthly subscription amount is not less than (3,000)
dirhams and does not exceed (70,000) dirhams.

The new law allows the insured to request the purchase of a nominal
period of adjoining to be added to their actual service periods provided
that they have worked actual period of service of at least (25) years
when submitting the purchase request, or a period of (15) years if they
have reached the age of (60) years. The period required to be
purchased should not exceed (5) years for both men and women.

The new Federal Decree Law introduced further equality between

insurers from government and private sectors. The pensioner whose
subscription period has reached (30) years, has the right to combine
the pension with salary, regardless of their value. This combination
applies to retirees from the government and private sectors. The Law
also stipulates that the payment of the pension shall be suspended if
the pensioner joins a new job covered by the provisions of the new law
in exchange for compensation (whether a monthly salary, a lump sum,
or a reward) if this compensation is equal to or greater than the value
of the pension, and they will be paid the difference if the new salary is
less than the pension amount. The pension will be repaid at the end of
service in accordance with the provisions of the Decree Law.

The Law has authorized the GPSSA to set the executive regulations and
conditions for employers and self-employed people to benefit from this
new Federal Law. A decision shall be issued by the Minister of Finance
after the approval of the Authority’s Board of Directors. The GPSSA is
also authorized to draft the necessary executive regulations and
conditions to apply the provisions of the Gulf Cooperation Council
(GCC) Insurance Protection Extension Program.

How do you rate the thumb_up thumb_down

contents of this page?

Visitors Number: 23337

https://gpssa.gov.ae/en/Pages/NewsDetail.aspx?newsId=492#/#/ 4/5
4/1/24, 11:09 AM General Pension and Social Security Authority announces issuance of new Federal Decree Law on Pension

       


Call Center Working hours
Monday - Friday
80010 9:00 AM - 2:30 PM

Programs

Copyright © UAE Federal E-Government. All Rights Reserved.

This site is responsive to your screen resolution Supports Microsoft
Internet Explorer 9.0+, Firefox 1.0+, Safari 1.2+, Opera 6.0+, Chrome
36.0+

Privacy Policy Terms & Conditions Disclaimer

UAE Government Charter for Future Services Help & support

Contact us FAQ Accessibility Policy Digital Participation Copyright

Glossary Customer Happiness Centers Supplier Registration

https://gpssa.gov.ae/en/Pages/NewsDetail.aspx?newsId=492#/#/ 5/5