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Pensioner Overview

Pensioner:

Every UAE national whose service is terminated and who is entitled to a monthly pension in accordance with the provisions of the Law.

The pension shall be paid in the following cases:

1- The termination of the service of the insured by reason of death or total disability and in both cases, pension shall be payable regardless of the service period.

2- The termination of the service of the insured for reaching the retirement age which is 60 years old, and such whenever the period of subscription thereof in such insurance reaches fifteen years at least.

3- The termination of the service of the insured by reason of dismissal, removal or retirement thereof by virtue of a disciplinary decision or a judicial ruling, whenever the period of subscription thereof in such insurance reaches fifteen years at least.

 4- The termination of the service of the insured by reason of the winding up, bankruptcy or liquidation of the company, should he be subscribed in such insurance for a period of fifteen years at least.

 5- The termination of the service of the insured male by reason of resignation, whenever the period of subscription thereof in the insurance reaches twenty years, and he reaches fifty five years at least and this shall apply gradually on the insured who reached (40) years of age on 28-7-2007 as follows: ​

Age of Pension Entitlement

Year

402007
412008
422009
432010
442011
452012
462013
472014
482015
492016
502017

7- The termination of the service of the insured female who is married, divorced or widowed, by reason of resignation, should she have children under eighteen years of age whenever the period of subscription thereof in the insurance reaches twenty years.

 8- The termination of the service of the insured by virtue of a Federal decree or a local decree, provided that the treasury of the pertinent Emirate bears the actual expenses incurred there from. The President shall issue a decision with regards to the method of calculation of such expenses. The Pension shall be calculated based on (15) years of service or according to the provisions of the decree.

9- The termination of the service of the insured for reasons other than the ones set forth in the preceding clauses, whenever the period of subscription thereof in the insurance reaches twenty years at least.

10- The termination of the service of the insured by reason of death or total disability due to work injury, pension shall be payable regardless of the service period.

11- Pension calculation:

  • Salary of pension calculation:
    • In regards to the insured in the government sector, the average salary of subscription calculation for the last 3 years of service or subscription period if service term is less i.e. aggregate subscription calculation salaries for 3 years divided by 36 or aggregate contribution calculation salaries for the period less than 3 years divided by months of service.
    • In regards to the insured in the private sector, the last salary of pension calculation shall not be more or less than 20% of the average salary of subscription calculation in the five preceding years or the actual subscription period, whichever is less.
    • The pension shall be calculated monthly on the basis of 60% of the salary of pension calculation for the subscription periods included in the insurance reaching fifteen years. 
    • The percentage shall increase by 2% for every additional year and up to a maximum of 100% of the salary of pension calculation.
    • Should the service period exceed thirty five years , the insured shall be granted benefit for the additional year amounting to the salary of three months for every year of the salary of pension calculation category. 
  • The pension shall be calculated monthly on the basis of 60% of the salary of pension calculation for the subscription periods included in the insurance reaching fifteen years.  
  • The percentage shall increase by 2% for every additional year and up to a maximum of 100% of the salary of pension calculation.
  • Should the service period exceed thirty five years , the insured shall be granted benefit for the additional year amounting to the salary of three months for every year of the salary of pension calculation category.

Example:

The service of an insured person ended due to death while his salary of pension is AED 20,000 and his service term is (10) years whilst his ages is (55) years. How much is his pension?

60% x 30,000 = AED 12,000

6% for (3) assumed service years

Pension= 66/100 x 20,000 = AED 13,300

  • Calculating the pension for death or total disability due to work injury. 
  • The pension shall be calculated assuming his service term is (35) years regardless of his actual service term. 

Pension entitlement date:

  • The pension entitlement date starts the day after the termination of the service of the insured.

Pension minimum limit:

  • The minimum pension value is equivalent to AED 10,000.

Example:

The service of an insured person ended and his salary of pension average is (AED 10,000) and his service term is 10 years. How much is his pension?

66/100 x 10,000 = 6,000 which shall be raised to AED 10,000

Deductions from pension:

10% of pension may be deducted in the following cases:

  • End of service due to dismissal, termination or committal to retirement pursuant to a disciplinary order.  
  • End of service for reasons other than those listed in items 1 to 10 of article (16) of the law. 
  • No deduction may take place if the service term reached (25) years.

 

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