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CHAPTER TWO: RULES OF CALCULATION OF SUBSCRIPTIONS - Article 10

Last updated 10/08/2024 17:13 PM

a - contributions paid by the employer in the private sector and contributions deducted from the salaries of the insured working therefor shall be calculated within a Gregorian year on the basis of the salaries paid thereto on January of every year.

b - The contributions of workers undertaking services in the private sector after January shall be calculated based on the salary of the month during which they have undertook the service, and such until the following January, after which they are treated based on the provisions of the preceding paragraph. contributions shall be calculated in full for the month in which the service starts, and shall not be due for the part of month in which the service is terminated.

c - contributions paid by the employer in the Governmental Sector, and contributions deducted from the salaries of the insured shall be calculated based on the monthly salary.

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CHAPTER TWO: RULES OF CALCULATION OF SUBSCRIPTIONS - Article 9

Last updated 10/08/2024 17:08 PM

contributions shall be due for the following periods and such in accordance with the rules and provisions set for each thereof:

1 - Periods of external secondment without pay, or periods of special leaves: the insured shall bear his share in the contributions as well as the shares of the employer, and shall pay them to the Committee all at once within a year from the date of the termination of the secondment or the leave. He may pay them in installments for a period equal to the leave or secondment period with the agreement of the Director General of the Committee.

2 - Special leaves for accompanying the spouse:
a - Should the special leave be for accompanying a Diplomat, the Governmental Sector shall bear the share thereof as well as the share of the insured.
b - Should the special leave be for accompanying the delegate in a study leave, the Governmental Sector shall bear the share thereof as well as the share of the insured.
c - Should the special leave be for accompanying the insured in the private sector, the insured shall bear his share as well as the share of the employer. The insured shall pay the due sums all at once to the Committee within one year from the date of the termination of the leave. He may pay them in installments for a period equal to the leave period.

3 - Periods of study leaves without pay: The employer in the Governmental Sector shall pay his share in the contributions to be paid periodically. The insured shall pay his share and pay it as referred to in Clause (1). As for the private sector, the insured shall bear both shares in this context.

4 - Internal secondment periods: The party to whom the employee is seconded shall bear the share of the employer in the contribution, should it bear the pay of the employer, while the insured shall pay his share to the Committee in a periodical manner based on the salary of the insured at the seconding party.

5 - Periods of sick leaves: the insured shall pay his share based on the actual salary paid thereto, whereas the employer pays his share based on the entire salary, regardless of whether the leave was with or without pay.

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CHAPTER ONE :THE CALCULATION OF THE PERIOD OF THE contribution IN THE INSURANCE - Article 8

Last updated 10/08/2024 16:18 PM
The employers bounded to a better end of service benefits regulations shall bear the excess value between the sums due thereby for such regulations, and the contributory end of service benefit in accordance with the provisions hereof, as well as for the benefit payable due to the difference between the maximum salary for the subscription of the private sector in such insurance and the benefit calculation salary in their regulations, should it be higher. Such excess or difference shall be calculated for the entire service period of the insured therefor, whether such period include service periods that precede or follow the subscription in the Committee. Such sums shall be paid in full within one month from the termination of the service of the insured to the Committee, who shall in turn pay them to the insured or the beneficiaries thereof upon the termination of the service.
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CHAPTER ONE :THE CALCULATION OF THE PERIOD OF THE contribution IN THE INSURANCE - Article 7 - As amended by Federal Law no. 7 dated 15/02/2007

Last updated 10/08/2024 16:17 PM

Should a person acquire during his service at the entities subject to the provisions hereof the nationality of the State, he may include the period of service preceding his acquirement of the nationality to the pension or benefit account, provided that he bears his share as well as the share of the employer for such period with regards to subscriptions referred to in Article 2 hereof, and for the salary of subscription calculation at the date of the request of inclusion.

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CHAPTER ONE :THE CALCULATION OF THE PERIOD OF THE contribution IN THE INSURANCE- Article 6

Last updated 10/08/2024 16:16 PM

The previous service duration shall be included with regards to the national workers who are still in service before the local government authorities which are required to be subjected to the provisions hereof by the government of the pertinent Emirate in the subscription period in this insurance from the date of appointment and until the date of benefit from the provisions thereof , provided that such authorities bear the payment of the total share of subscriptions referred to in Article 2 hereof related to the employer , as well as the share of the insured , and such based on the salary of subscription calculation at the date of the benefit from the provisions hereof . The method of payment shall be regulated by virtue of a decision issued by the Minister.

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CHAPTER ONE :THE CALCULATION OF THE PERIOD OF THE contribution IN THE INSURANCE - Article 5 - As amended by Federal Law no.7 dated 15/2/2007

Last updated 10/08/2024 16:14 PM
The merger of the service periods referred to in the preceding Article shall require the following:

1 - The insured must express his desire in writing to include such periods prior to the termination of the service thereof, provided that he encloses with his request the necessary certificates and documents.

2 - The previous service durations required to be included must not have ended due to reasons of total deprivation of the pension or the allocation.

3 - The periods required to be included must not be temporary, daily or one of the probation periods that precede the appointment.

4 - The insured shall pay his share as well as the share of the employer for the period required to be included in the calculation of the salary of subscription calculation all at once at the date of the request of inclusion. The sums may be paid in monthly installments amounting to one quarter of the salary at least. The duration of the installments shall not exceed the age of sixty of the insured. In all cases, the entire expenses of inclusion shall be paid prior to the termination of the service. The obligation of payment of installments shall abate should the service of the insured end in death and the value of the paid installment reach 50 % of the total sum due thereby. Should the value of the sums paid thereby be less than 50 %, the remainder shall be deducted from the pensions of the beneficiaries thereof.

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CHAPTER ONE :THE CALCULATION OF THE PERIOD OF THE contribution IN THE INSURANCE - Article 4

Last updated 10/08/2024 16:08 PM

The following periods shall be included in the current contributory service, or the allocation required to be included by the insured:

1 - The previous service period in the Governmental Sector.

2 - The previous service period in the special departments applying the pension regulations.

3 - The military service period.

4 - The previous service period before any employer subject to the provisions hereof.

5 - The service period referred to in the paragraphs 1, 2, 3 and 4 prior to the obtainment of the State nationality.

6 - The previous service period in the Development Council or the Kuwait Office.

7 - The previous service periods at any party decided by the Board of Directors.

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CHAPTER ONE :THE CALCULATION OF THE PERIOD OF THE CONTRIBUTION IN THE INSURANCE - Article 3

Last updated 10/08/2024 16:09 PM

The calculation of the period of the contribution in the insurance shall include the periods of services included in the laws of pensions referred to in Article 2 of the Law of Issuance, in addition to the service period spent by the insured at an employer subject to the provisions hereof and the periods of all types of vacations and the guaranteed periods.

Shall not be calculated in the insurance the following periods:

1 - The period of cessation of work without pay, or the suspension from work where it is decided to deprive the insured of his pay therefore.

2 - The previous periods where the insured was deprived of his pay, or the allocation therefor by virtue of a disciplinary decision or a judicial ruling.

3 - The periods which may not be included in accordance with the provisions hereof.

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Article 2

Last updated 10/08/2024 16:11 PM
The contributions of the insured shall include the following:

1 - Monthly contributions born by the insured, amounting to 5 % and deducted from the salary of contribution calculation.

2 - Monthly contributions paid by the employer, amounting to 15 % from the salary of contribution calculation of the insured working therefore. As for the employer in the private sector, the Government bears 2,5 % of his share in contributions paid to the Committee as a subvention to encourage him to employ nationals.

3 - Additional sums payable due to the delay in the payment of contributions.

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Article 1: As amended by Federal Law no. 7 dated 15/2/2007

Last updated 10/06/2024 23:25 PM
In the implementation of the provisions hereof, the following terms and phrases shall have the meanings assigned for each of them unless the context requires otherwise:

State: The United Arab Emirates State.

Committee: The General Committee for Pensions and Social Security.

Minister: The Minister of Finance and Industry.

Board of Directors: The Board of Directors of the Committee.

The Employer:

a) In the Governmental Sector:

T The Federal Governmental authorities, the public institutions, agencies and companies, and banks in which the Federal Government owns shares, in addition to the local governmental authorities required to be subjected to the present Law by the government of the pertinent Emirate.

b) In the Private Sector:

Every natural or juridical person employing national workers in counterpart of a salary of whatever kind.

The Insured: Every national subject to the provisions of the present Law.

contribution Period: The period of the service for which the insured is entitled to a pension or a benefic as the case may be and in accordance with the Law.

Pensioner: Every person whose service is terminated and who is entitled to a Pension in accordance with the provisions of the Law.

Pension: Sixty years.

Pension: The sum due by the Committee every month in a periodical manner to the Pensioner or the beneficiaries thereof in accordance with the provisions of the Law.

Beneficiary: Every person entitled to a share in the pension due to the death of the insured or the pensioner.

Service Period: The entire period of service spent by the insured, during which he was subject to the pension regulation, in addition to the periods that may be included therein in accordance with the provisions of the Law.

Work Injury: Injury caused by an accident occurring during or because of the work, or the contraction by a worker of an occupational illness. The death resulting from stress or exhaustion due to work shall be deemed a work injury whenever the conditions and rules issued by virtue of a decision by the Minister in agreement with the Minister of Health are fulfilled. Every accident occurring to the insured during his commute from and to work shall be deemed a work injury.

Occupational Illness: The illness sustained in an extensive manner by the persons working in one or more occupations only and such as per the list no. 1 annexed to the said Federal Law no. 8 of 1980 The extent of disability caused by the occupational illness shall be assessed with the knowledge of the pertinent medical committee. The illness shall be deemed occupational should the insured contract same during the practice of the profession or within one year from his departure from the work.

Injured: Every insured sustaining an occupational injury.

Patient: Every person sustaining an illness or an accident that is not deemed a work injury.

Total Disability: Every disability hindering the insured in a complete and permanent manner from practicing any profession or work to make a living, and such shall be noted in the decision of the competent medical committee after the settlement of the condition. Among such cases the complete loss of eyesight, arms, legs, one arm and one leg, mental illnesses, chronic and incurable illnesses determined by virtue of a decision issued by the Minister of Health.

Partial Disability: Every disability caused by a work injury, and affecting in a permanent manner the ability of the insured to work in his original profession or make a living in general. Such shall be noted in a decision by the competent medical committee after the settlement of the condition, by virtue of the list no. 2 annexed to the present Law, clarifying the degrees of disability in the event of the loss of a body member. Should the disability not be mentioned in the said list, the percentage thereof shall be estimated as per the incapacity sustained by the insured to make a living, provided that such percentage is mentioned in the report of the said medical committee. Should the resulting disability have a special effect on the capacity of the injured to make a living from his original profession, the type of work carried out by the injured shall be mentioned in details, and the effect thereof on the increase of the disability level in such cases beyond the percentages set therefor in list no. 2 annexed to the present Law.

Natural Death: Death not deemed a work injury.

Competent Medical Committee: The medical committee established by virtue of a decision issued by the Minister of Health.

Salary of contribution Calculation:

a - For the Governmental Sector: The basic monthly salary of the insured, in addition to monthly bonuses and allowances granted thereto, namely:

Bonus of the living costs, social allowance for children, social allowance for nationals, living allowance decided according to the level thereof. The living allowance shall be estimated on a monthly basis with regards to persons receiving such allowance on an annual basis, and such by dividing it on the number of months per year, provided that the salary of contribution calculation of the insured does not exceed that of the Minister.

b - For the Prime Minister, the Deputy Prime-Minister, the Ministers and similar persons: The basic salary plus the living allowance and other monthly and yearly allowances. The yearly allowances shall be estimated on a monthly basis by dividing them on the number of the months per year.

c - For the President of the Federal National Council: The salary of contribution calculation with regards to the Minister.

For the Members of the Federal National Council: a membership allowance.

d - For the Private Sector: The salary determined by the employment contract. Should such salary be less than 1.000 Dirhams per months, such minimum limit shall be taken into account upon the implementation of the present Law. Should the salary exceed 50.000 Dirhams per month, such amount shall not be taken into account. The Minister may, upon the approval of the Board of Directors, amend the minimum and maximum limit as the financial center of the Committee allows.

Salary of Pension Calculation:

a - In the Governmental Sector: The average of the salary of contribution calculation for the last three years of the period of the contribution in the social security, or for the entire period should it be less than three year.

b - For the Prime Minister, the Deputy Prime Minister, the Minister and other similar persons: the salary of contribution calculation.

c - For the President of the Federal National Council: the salary of contribution calculation with regards to the Minister, and for the members of the Federal National Council, the membership allowance.

d - For the Private Sector: The average salary of contribution calculation for the last five years of the period of contribution in the social security, or for the entire period should it be less than five years.
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