UAE Federal Decree Law improves pension and social security opportunities
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He General Pension and Social Security Authority (GPSSA) said the new Federal Decree Law No. 57 of 2023 on pensions and social security correlates with the UAE government’s efforts to encourage Emiratis to join the labor market by offering equal opportunities in pensions and security social in the government and private sectors.
GPSSA He explained that one of the most crucial steps introduced in the new law includes an increase in the contribution account maximum limit, which was previously AED 50,000 and was raised to AED 70,000, similar to the contribution account salary for individuals insured women employed in political and international missions that are included in the pension law; AED 100,000 is now considered a maximum salary in the contribution account for employees working in the government sector.
In addition, the average pension account salary for employees in both the government and private sectors is based on the last six years of work or the entire contribution period if the service period is shorter, thus offering employees equality of opportunities under Law No. 57 of 2023.
The new law gives insured Emiratis the opportunity to merge both their pension and salary given that they spend 30 years of service in their entity, regardless of whether they work in a government or private sector, against the 25-year service period required for be able to merge the pension and salary from the contribution account, which was limited to employees who worked only in the government sector, according to Federal Law No. 7 of 1999.
Private sector employees whose salaries in the contribution account are less than AED 20,000 are supported by the UAE government under Law No. 57 by 2023, which assume 2.5% of the entities’ participation as a means of supporting the private sector to hire Emiratis, leaving the employer responsible for paying 12.5% instead of 15%.
News source: Emirates News Agency
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