Awareness tips as part of the “End it right” campaign Insured Emiratis are encouraged to increase their employment years in order to benefit from a higher retirement pension and end-of-service gratuity
Abu Dhabi, 9th October 2023: During each career stage, insured Emirati individuals can vastly benefit from receiving a high pension amount and/or end-of-service gratuity, given that they are well-aware of the pension and social security conditions they are entitled to, from the moment they are employed and with each passing year.
In order to receive the highest retirement pension possible and secure an insured Emirati’s post-retirement future expenditures, the General Pension and Social Security Authority (GPSSA) highlights the benefits of working for the longest period of time as part of the “End it right” campaign, which offers detailed information about the advantages received with increased years of employment and a possible salary increase, which evidently results in receiving a higher pension and end-of-service gratuity.
To specify, insured Emiratis are required to understand the importance of paying contributions to their account salaries with the GPSSA each month, and are responsible in following-up with their entities about the amounts disbursed on monthly basis, whether employed in a government or private sector, from the second they are hired. Employers on the other hand are mandated to register Emiratis with the GPSSA no later than one month from their joining date. The insured must then pay his/her share in contributions for 5% of the contribution calculation salary and the entity deducts that amount from the insured’s salary and transfers it to the GPSSA on monthly basis within the first 15 days of each month.
From here, the insured Emirati must be aware of the type of advantages he/she is entitled to in order to receive the highest pension and end-of-service gratuity, and that can only increase with long employment years and salary increases, which result in increasing the value of the contribution calculation salary, thus a higher pension and end-of-service gratuity.
It is worth noting that a pension becomes payable on the next day of a service termination and increases in value with longer service period based on the average of the contribution calculation salary for the last three years of service in the government sector (i.e. total contribution calculation salary for the last three years divided by 36), and for the last five years of service in the private sector (i.e. total contribution calculation salary for five years divided by 60).
Additionally, the insured is offered a gratuity against extra employment years at a rate of a three-month salary per year given that they have worked more than 35 years, as an example an insured whose service period lasts 38 years and receives a contribution calculation salary of Dh25,000 receives a gratuity of Dh275,000 (3 x Dh25,000) plus retirement pension.
An end-of-service gratuity is due against each year of service. The more the individual works, the higher the end-of-service payment. Gratuity due against each year of service, starting from one to five years is calculated based on a 1.5-month salary. A two months salary is granted for the next five service years and a three months salary is granted for the subsequent five years (ten years employment duration or above). In case of a service termination, the insured is entitled to a gratuity for the full month.
Insured Emiratis are encouraged to learn more about the contribution account salary and how it is calculated through closely following GPSSA’s “End it right” awareness campaign, available on all of GPSSA’s official news platforms, including news releases and social media posts, where ample information and material is available publicly.
