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.
- 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.
- will bring further equality in insurance benefits to encourage UAE nationals to join private sector companies.
Application of the law:
- The new Federal Decree Law will be applied to Emirati employees who joined the labour market for the first time from the date (31 October 2023) 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 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.
Monthly contribution rate:
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.
Monthly contribution base:
Government sector - The monthly subscription salary 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 housing allowance, provided that the value of insured’s contribution account salary should not exceed (100,000) dirhams.
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 system will be updated soon!