UAE
UAE Announces New Pension Law for Divorced, Widowed Women
The General Pension and Social Security Authority (GPSSA) has announced a new Federal Decree-Law on pensions for UAE nationals.
The new law applies to new participants who will join the Emirates labour market for the first time. The current pension law will continue to apply to current employees as well, the authority said in an X post.
الهيئة العامة للمعاشات والتأمينات الاجتماعية تعلن عن صدور مرسوم بقانون اتحادي جديد بشأن المعاشات والذي يُطبَّق على الموظفين والعاملين المواطنين الجدد الذين سينضمون لسوق العمل لأول مرة ابتداءً من تاريخ العمل بالقانون في الجهات المشتركة لدى الهيئة pic.twitter.com/IIQqUHIIc2
— UAEGOV (@UAEmediaoffice) November 17, 2023
New UAE pension law
Under the new pension law, the key provisions include:
- Raising the maximum contribution account salary for UAE nationals working in the private sector from AED50,000 to AED70,000.
- Pension is calculated for both government and private sectors based on the average contribution account salary as per the last six years of service.
- However, there are seven cases of the insured’s entitlement to a retirement pension.
- An insured women who is married, divorced or widowed can request for retirement pension. The minimum age and subscription, however, may be reduced if she is a mother of five children or more.
- The minimum age of the insured must be 55 years, and the subscription period must be 30 years.
- A pensioner from both government and private sector has the right to combine the pension with their salary from a new job, if the subscription period has reached 30 years.
- The monthly contribution for the insured is 26 percent of the contribution account salary, of which the insured bears 11 percent, the employer bears 15 percent and the government bears 2.5 percent of the private sector employers’ share for working UAE nationals whose contributions are less than AED20,000.
