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The UAE’s Pension Authority highlights the five basic elements by which the contribution calculation salary in the government sector is based

Last Updated 26/08/2024 08:45
The UAE’s Pension Authority highlights the five basic elements by which the contribution calculation salary in the government sector is based

Abu Dhabi, 24 August 2022:   The UAE’s General Pension and Social Security Authority confirmed that the contribution calculation salary with the Authority in the government sector is based on five main elements, including the basic salary, children's allowance, cost of living, housing allowance and social allowance.


Therefore, when the insured individual retires, these elements remain the main component for his/her pension in order to provide a decent standard of living for the pensioner, while reducing the gap between the salary and the retirement pension in a way that guarantees a stable and comfortable life.


Hanan Al-Sahlawi, Executive Director of the Pensions Sector, stressed the need to familiarize the insured with five elements by which the pension calculation in the government sector depends, since knowing the pension calculation salary forms the foundation for calculation. The last three years of the pension contribution period or the entire contribution period if less than that is calculated according to the insured’s months of service.


Al-Sahlawi stressed the need to communicate with the GPSSA through its approved official channels in order to respond to all inquiries related to the mechanisms for calculating the contribution salary and pension. This will result in further fluency amongst GPSSA’s clients, who are required to familiarize themselves with the law and know their rights and best practices while they are employed.
 

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Frequently Asked Questions

What periods may the Insured merge?

• Previous service periods with any employer subject to the provisions of the Federal Decree-Law

•Previous service period prior to acquiring the UAE nationality

•Previous service periods in any entity determined by the Cabinet

What are the conditions for an insured’s registration with the GPSSA?

• The individual must be a United Arab Emirates national

• The individual must be between the ages of 18 to 60

• The individual must be medically fit to work upon appointment, as evidenced by an approved medical report

• He/she must work for an employer subject to the provisions of the law applied by the GPSSA

If a pensioner from the GPSSA returns to work, and their pension disbursement was suspended because their salary was greater than the pension amount, and they contribute again under the provisions of the law, how will their service be settled in the future if they leave work?

· If they become entitled to a pension for their subsequent service period, they shall be disbursed the larger of the two pensions, whether it's the one they are entitled to for their previous service period or for their subsequent service period

· If they become entitled to a gratuity for their subsequent service period, the gratuity shall be disbursed to them, and the suspended pension shall be reinstated for disbursement

If an employer paid excess amounts to the GPSSA, is there a specific period within which they have the right to claim them back?

Yes, the employer may reclaim any amounts they paid to the GPSSA that exceed the required contributions, but under condition that they claim them within two years from the date of payment.

Is there a mechanism that the Insured, Pensioner, Beneficiary, or any interested party must follow to claim their rights and have reconsidered before resorting to litigation?

Before a rights holder can go to court, they must first appeal the pension or gratuity decision to the Insurance Appeals Committee formed by the Board of Directors, and this must be done within five years of becoming entitled to the pension or end-of-service payment. This means the committee must be petitioned before taking legal action against the employer, and the appeal has a five-year deadline. 

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