New Decree Law No. 57 of 2023 helps obtain a retirement pension by merging years of employment at no cost: GPSSA
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The new Decree Law No.57 of 2023 announced by the General Pension and Social Security Authority (GPSSA) helps improve the chances of insured Emiratis obtaining a retirement pension by merging years of employment at no cost, thereby increasing the possibility of obtaining a pension and/or an end-of-service gratuity once they are ready to retire .
Once an insured elects to merge years of employment by joining a new entity, the preceding and subsequent years of employment will be legally consolidated, and the end-of-service bonus will be paid at the end of the overall employment period.
An insured who elects to pay an end-of-service gratuity upon joining a new entity, and then wishes to merge years of service, may still elect to do so given that his or her share of the contributions for the merged periods is paid, as such. In this case, the cost of the merger is calculated in the contribution account on the date of submission of the merger application, multiplied by 26% and then multiplied by the desired service periods in months.
The cost of the years of service merger is paid before the end of the period of employment in a single sum and within 30 days from the date of approval of the merger application; Otherwise, the merger request will be canceled and the insured may pay the cost in installments according to the conditions established by the Board of Directors.
Additionally, when the insured’s service period ends without having paid the full amount, the included service period is automatically calculated based on the amounts actually paid.
He UAE Pension Authority highlighted that the periods that can be merged include: previous years of service with an employer to which the provisions of the new law apply, previous years of service with an entity approved by the Council of Ministers, as well as years of employment before the acquisition of UAE nationality, as the provisions of the law apply to all persons who obtain citizenship, since the entity is subject to the provisions of the law from the date of obtaining nationality, in which case periods of employment prior to this date may be merged. .
To avoid total or partial deprivation of pension or gratuity, insureds must express their desire to consolidate employment years before ending their service, stating that their years of service have not ended as a result of a termination, and that they were employed full-time and not based on training or a temporary period.
GPSSA He added that if a pensioner returns to work, he will be able to merge the period of service for which he was entitled to a pension with the new years of service, so that at the end of the period of service it will be treated as the basis of both periods together, considering the terms and conditions issued in this regard.
News source: Emirates News Agency
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