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Frequently Asked Questions

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How is the monthly pension is calculated?

Last Updated 21/08/2024 08:52

Step 1:

First, calculate the contribution salary.

Government sector: Monthly basic salary, social allowance of an Emirati national, children's allowance, cost of living and housing allowance, given that it does not exceed Dh300,000, which is a minister's contribution salary.

Private sector: The salary stipulated in the employment contract, including the basic salary, bonuses and regular monthly allowances, with a maximum of Dh50,000.

Step 2:

Second, calculate the average contribution salary.

- Government sector: Average contribution salary for the last three (3) years of service - i.e. total contribution calculation salary throughout the entire three (3) years divided by 36.

- Private sector: Average contribution salary for the last five (5) years of service - i.e. total contribution calculation salary throughout the entire five (5) years divided by 60.

Step 3:

Understand the pension entitlement rates compared to years of service and/or employment.

Years of service	15	20	25	30	35
Amount due	60%	70%	80%	90%	100%

Please note:

The retirement pension increases by 2% yearly given that the insured's employment duration exceeded 15 years with a maximum limit set at 100% of the contribution account salary, given that the insured individual has completed 35 years of employment service.

Step 4:

Extract the value of your retirement pension by multiplying the average contribution salary by the percentage of your employment service period.

For example:

If the average contribution salary of an employee is Dh15,000 and his/her service period was 20 years, the retirement pension is calculated as follows:

Dh15,000 X 70% = Dh10,500 (pension).

Is pension or gratuity subject to deduction or seizure?

What consequences does an insured individual face in terms of end-of-service gratuity and pension entitlement if he/she is terminated from an entity due to a disciplinary decision?

What is the equivalent of purchasing the nominal service period?

How do you pay the cost of purchasing the nominal service period?

Is a retired individual who returns to work in an entity associated with the GPSSA held accountable at the end of his/her service period on the basis of previous and subsequent periods of service?

Who bears the cost of reimbursement?

How is the cost of addition of previous years calculated?

What are the conditions for purchasing the nominal service period?

What is meant by merging the previous employment period?

What are the conditions around merging employment years?

What are the periods of service that can be included in my pension scheme?

What are the violations incurred by an employer in the event of non-payment of contributions on behalf of its employees, or if the contributions paid out were not accurate wages?

What happens if the insured resigns after 20 years of service before reaching the age of 50?

Can an insured person who has not reached the age of 50 and has an employment service period of 20 years choose to disburse his/her pension or end-of-service?

What are the periods of service included in the contribution?

What are the service periods that are not included in the contribution account?

What are the rules for paying contributions in case of leaves/vacation?

What are the documents and registration requirements needed for Emirati employees to start the contribution process and become insured individuals?

What happens to an employee whose been newly recruited in the private sector after the month of January? How are his/her contributions calculated in such case?

Who is responsible to contribute each month in the event of a vacation?

How is the retirement pension divided amongst widows and children?

Who exactly is eligible to receive a pension plan by GPSSA?

What are the criterions for employers to be subject to the Federal Pensions Law when there are multiple headquarters and branches?

What kind of pension benefits do I get if I work for a longer period of time?

On which basis shall pensions be distributed, legislation or what?

What does an allocated pension mean?

I am now 47 years old and served for 20 years. Am I entitled to a pension directly after submitting my resignation?

Am I required to pay my due contributions of 5% retroactively as a result of not being registered with the GPSSA by my employer?

How is the pension divided if only two persons remain eligible?

When does the retirement pension decrease or increase?

Does a child’s social allowance get disbursed if the pensioner has a newborn after retirement?

Is it advisable to add a service period in all cases? Is it better to add the service period after working for a while or when starting a new job immediately and why?

If a widow who is eligible for a share in her husband’s pension passes away, who does her share go to?

Is the retirement pension for a providing female inherited or does her pension stop with her death?

Is it possible to add a previous service period that’s less than one year?

Can I choose between receiving a pension salary or an end-of-service gratuity?

Is it possible to add a previous service period to a new service period after retirement?

Is it mandatory to add all previous service periods?

Is registration at GPSSA mandatory?

What are the benefits of contribution in GPSSA's Social Security System?

Who is responsible for registering Emirati employees in GPSSA’s records?

What happens to a pensioner who’s been terminated due to a disciplinary decision by his/her employer in case of death?

If a pensioner dies after being deprived from the pension due to losing his/her UAE nationality, what is the fate of his/her beneficiaries?

What are the duties of a retired person (pensioner) towards the GPSSA after entitlement and payment of their pensions?

How many years of legal service can be requested to be purchased, and what are the terms of purchase?

What happens if an insured individual or pensioner loses his/her UAE nationality?

What are the applicable conditions around an Emirati employee who was entitled to receive a pension fund from the Abu Dhabi Pension Fund and then joined another entity affiliated with the GPSSA (who offer a different pension scheme)?

How is the additional cost for merging service periods paid? Can it be settled through installments to the GPSSA?

What is meant by purchase of a nominal service period?

If a retired Emirati returns to work in the UAE, what will happen to his pension? Is it allowed to combine his pension and work salary?

Are there any exceptions, which allow a retired individual or beneficiary to combine his/her pension and work salary unlimitedly?

If a retired person returns to work in an entity affiliated with the GPSSA and contributes again, is he/she permitted to receive a retirement pension for the subsequent period of service?

What are the entitlement conditions around a deceased son’s pension for both his father and mother?

Is there a minimum limit of shares distributed to eligible beneficiaries?

What are the conditions of a brother’s entitlement to a share in the pension of the deceased?

Is a daughter entitled to a share in the deceased’s pension? Are those shares discontinued?

What are the conditions of a sister's entitlement to a share in the pension?

Describe the conditions around a son's entitlement to his deceased father or mother's share in pension.

If an insured individual’s service comes to an end during the month, will his/her payment for the next month be calculated?

What is the time frame for a retirement pension?

Are there any other benefits other than the average pension calculation salary in case an insured is proven to have a work-related injury resulting in total disability or death?

If the service of the pensioner is terminated and he/she has not completed the last month of his/her service, is this part of the month calculated in the pension?

How is the monthly pension is calculated?

What is the maximum pension limit ?

What are the eligibility conditions in case an insured individual resigns from service?

What are pension entitlement conditions in case the insured is deceased?

What is the minimum retirement pension rate disbursed by the General Pension and Social Security Authority?

What is the retirement age and what are the pension entitlement conditions once retired?

Is the insured entitled to a pension in case of service termination due to dismissal or removal?

What are the conditions of pension entitlement for an insured whose service is terminated due to health reasons?

Personal leave to accompany a spouse for study purposes or if that spouse is a diplomat.

When is an employer expected to pay monthly contributions to the General Pension and Social Security Authority?

What consequences do employers face if contributions are not paid to the GPSSA on time?

Who bears the contributions in the event of leaves/vacation and secondments?

Study leave without salary or pay.

Which salary upon which contributions are calculated?

How are contributions calculated for part of the month at the beginning and end-of-service?

What is the distribution of contributions due from insured individuals?

Are there minimum and maximum limits for Contribution Calculation Salary?

Is there a document required to prove that the Emirati employee has been registered with the GPSSA?

What are the obligations of the insured after registration with the Authority?

What is meant by the Contribution Calculation Salary by which contributions are deducted?

What is meant by the insured?

What are the procedures to register and insure Emiratis under the provisions of the pension and social security law?

What are the documents required for the registration of UAE Nationals with the Authority as contributors in order for them to become insured?

Who is subject to the pension law?

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