UAE News Today : Politics

Abu Dhabi Pension Fund modifies retirement law and introduces new benefits


Abu Dhabi: The Abu Dhabi Pension Fund made changes to the retirement law and introduced new features to further improve equal access to benefits among UAE employees working in the public and private sectors in the Emirate of Abu Dhabi.

The changes aim to maintain a competitive and sustainable retirement system that ensures equality between public and private sector employees.

The amendments will ensure an advanced and flexible retirement plan that aligns with the career aspirations and needs of citizens and provides them with the opportunity to receive enhanced retirement benefits after completing the maximum number of years of service.

The amended law applies to all currently insured citizens and does not affect their current rights. Insured citizens retain the right to calculate their pensions based on the periods of service applicable in the previous system. This also applies to other insurance benefits available to citizens insured under the previous system.

Key amendments

One of the key amendments to the pension law includes increasing the maximum pensionable amount to 100 percent of the deductible salary after completing the maximum number of years of service. Until the age of 25, insured citizens will receive a retirement pension equal to 80 percent of their salary, subject to deduction.

After having completed 25 years of service, they will have the option to increase this percentage by an additional two percent per year, up to a maximum of 100 percent of the deductible salary. This is an additional benefit that was not available in the previous retirement system, which offered a maximum pensionable amount of 80 percent of deductible salary, even after individuals had reached the maximum number of years of service.

Equality in the public and private sectors

Abu Dhabi Pension Fund highlighted that the amended retirement law ensures equality for all UAE nationals working in the public and private sector by standardizing the pension calculation process for all currently insured and new citizens employees, which will be calculated based on the average deductible salary. during the last six years of service.

In addition, the maximum deductible salary is now capped at Dh100,000 for those entering the labor market.

Under the amended law, the percentage of monthly retirement contributions has remained the same, at 26 percent of the deductible salary, with newly insured employees paying 11 percent of the contribution and employers paying 15 percent. The deduction percentages of those currently insured (who continue to work) are not affected.

Retirement age

According to the amended law, the minimum retirement age is set at 45 years, provided that 25 years of service have been completed. This retirement age will gradually increase at a rate of 6 months each year until reaching the new minimum retirement age of 55 years.

Focusing on recognizing the fundamental role of families in shaping and advancing society, the revised retirement system incorporates special provisions for employees with children, offering them early retirement benefits.


The amendments also include the option for female employees with children who wish to temporarily leave work due to family commitments to continue receiving retirement contributions from the Abu Dhabi Pension Fund during their period of leave, to ensure continuity of retirement benefits. The same benefit is also available to insured citizens who want to continue their higher education, according to the guidelines specified by law.

The amended law also allows insured citizens to access a combination of their retirement pension and salary after completing the maximum number of years of service or upon reaching the retirement age specified by law, as part of efforts to allow UAE employees continue to contribute to various aspects. of the national economy over a longer period.

Insured persons who meet the retirement criteria under the previous retirement system will continue to be eligible to retire under the new retirement system.


They will be given the option to continue working to take advantage of the new benefits provided by the modified plan, including the possibility of increasing the percentage of the retirement pension to 100 percent of the deductible salary upon completing the maximum number of years of service.


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