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GPSSA issues a circular regarding the rules for deducting debts from the pension and end-of-service gratuity

Last Updated 26/08/2024 08:35
GPSSA issues a circular regarding the rules for deducting debts from the pension and end-of-service gratuity

The General Pension and Social Security Authority (GPSSA) issued a circular to government and private sector employers to inform them of the rules for making pension deductions or end-of-service gratuity in accordance with the provisions of Federal Decree Law No. (57) of 2023.

The circular included limiting the procedure of deduction from the pension or end-of-service gratuity for the benefit of GPSSA’s debt, since the Authority is prohibited from making any deductions for the benefit of any other debts, whether they are for the benefit of the employer or alimony debts. These rules apply to all cases of debts prior to, or subsequent to the implementation of this decree, effective as of 2/9/2024.



Accordingly, the GPSSA will transfer the entire pension or gratuity without any deduction for any debt except GPSSA’s debt. As for the alimony debt, the person with an interest in this debt can take measures to seize the pension or gratuity through the bank by which it is transferred and not through the Authority.


In all cases, the Authority’s debt shall be recovered from the end-of-service gratuity without limits. The GPSSA has the right to deduct any sum disbursed to the beneficiary unlawfully from the shares of the other beneficiary on the date the incident becomes known and in proportion to what each of them is entitled to receive, and without prejudice to the other beneficiaries. Entitled amounts will be spent according to each of their shares.


It is important to highlight the fact that GPSSA has the right to collect its debts prior to any other amounts owed, as per the legislation regulating that particular point. These provisions apply to all citizens covered by the pension law applied by the Authority, as well as to employer’s subject to their provisions.
 

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