Abu Dhabi, 11th September 2024: The General Pension and Social Security Authority (GPSSA) has reported to have spent AED 2,671,998,000 from January to June 2024, out which AED 2,315,507,000 was disbursed to pensioners, AED 287,438,000 as an end-of-service gratuity and AED 40,892,000 on compensations (i.e. work-related injuries and/or decease).
An increase of AED 218,743,000 payment disbursements is evident in comparison to the same period last year, during which the value of pension, end-of-service gratuity and compensation expenses amounted to AED 2,453,255,000.
To specify the importance of the three different categories, the GPSSA provides detailed information about pension disbursements, end-of-service gratuity and compensations.
Pension disbursements:
Pension is an amount that a person looks forward to receiving once retired, since this is the exact time when insurance benefits are received after many years of contributing on monthly basis.
Under Federal Law No. 7 of 1999, Emiratis are entitled to a pension upon reaching the age of 60 given that they have spent 15 years employed. They are also entitled to receiving a pension in the event of resignation after completing 20 years of service. To receive this pension however, they must reach the age of 50. Federal Law No. 57 of 2023 on the other hand stipulates that an insured must be registered, complete 30 years of service and reach the age of 55.
End-of-Service gratuity:
An insured Emirati who is not entitled to a pension upon leaving his/her job, is entitled to receive an end-of-service gratuity as long as he/she has spent a minimum of one year working.
Compensations:
In cases where an insured employee is deceased or has suffered from a total disability due to a work-related injury, both federal laws state that pension is disbursed if an insured’s contribution period has reached 35 years or on the basis of his/her actual service period, whichever is longer.
An insured suffering from a partial disability resulting from a work-related injury is entitled to receiving a compensation estimated in proportion to the disability sustained, multiplied by AED 75,000.
Compensations only become valid upon submitted proof of decease or disability by a competent medical committee.
It is worth noting that if an insured’s employment has ended due to a natural death, a one-time compensation amounting to AED 60,000 is distributed to the heirs as per Sharia law, in addition to the due monthly pension amount as per the provisions of the federal pension law.
In case of a pensioner’s decease, the law stipulates the payment of a death grant equal to three pension account salaries are disbursed in one lump sum to those who were his/her dependents prior to the decease, in addition to the retirement pension which is also distributed to dependents.
Compensations:
In cases where an insured employee is deceased or has suffered from a total disability due to a work-related injury, both federal laws state that pension is disbursed if an insured’s contribution period has reached 35 years or on the basis of his/her actual service period, whichever is longer.
An insured suffering from a partial disability resulting from a work-related injury is entitled to receiving a compensation estimated in proportion to the disability sustained, multiplied by AED 75,000.
Compensations only become valid upon submitted proof of decease or disability by a competent medical committee.
It is worth noting that if an insured’s employment has ended due to a natural death, a one-time compensation amounting to AED 60,000 is distributed to the heirs as per Sharia law, in addition to the due monthly pension amount as per the provisions of the federal pension law.
In case of a pensioner’s decease, the law stipulates the payment of a death grant equal to three pension account salaries are disbursed in one lump sum to those who were his/her dependents prior to the decease, in addition to the retirement pension which is also distributed to dependents.