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CHAPTER THREE: PAYMENT OF OLD - AGE, DISABILITY AND DEATH PENSIONS - Article 16: As amended by Federal Law no.7 dated 15/2/2007

Last updated 09/23/2021 13:44 PM

The pension shall be paid in the following cases:

 

1 - The termination of the service of the insured by reason of death or total disability. Such disability shall be recorded with the knowledge of the medical committee.

 

2 - The termination of the service of the insured in the Governmental Sector by reason of unfitness for service. Such shall be recorded with the knowledge of the medical committee .

3 - The termination of the service of the insured in the private sector for health reasons endangering his life should he pursue his work, on condition that the decision of the medical committee precedes the date of the termination of the service.

4 - The termination of the service of the insured by reason of the winding up, bankruptcy or liquidation of the company, should he be subscribed in such insurance for a period of fifteen years at least.

5 - The termination of the service of the insured for reaching the retirement age, and such whenever the period of subscription thereof in such insurance reaches fifteen years at least.

6 - The termination of the service of the insured by reason of dismissal, removal or retirement thereof by virtue of a disciplinary decision or a judicial ruling, whenever the period of subscription thereof in such insurance reaches fifteen years at least.

7 - The termination of the service of the insured by reason of resignation, whenever the period of subscription thereof in the insurance reaches twenty years, and he reaches fifty five years at least.

8 - The termination of the service of the insured female who is married, divorced or widowed, by reason of resignation, should she have children under eighteen years of age whenever the period of subscription thereof in the insurance reaches twenty years.

9 - The termination of the service of the insured female by reason of resignation whenever the period of subscription thereof in the insurance reaches twenty years and she reaches fifty years or more.

10 - The termination of the service of the insured by virtue of a Federal decree or a local decree, provided that the treasury of the pertinent Emirate bears the actual expenses incurred therefrom. The President shall issue a decision with regards to the method of calculation of such expenses.

11 - The termination of the service of the insured for reasons other than the ones set forth in the preceding clauses, whenever the period of subscription thereof in the insurance reaches twenty years at least.

In all cases, the pension shall not be paid to the insured whose services are terminated by reason of resignation unless they have reached fifty years of age, provided that such condition apply to the persons who have reached forty upon the date of implementation of the present Law. The age shall be increased year by year until it reaches fifty.

The pension shall be calculated with regards to situations set forth in clauses (1, 2, 3, 4, 5, 6, 10) on the basis of the subscription period of fifteen years, or the actual subscription period, whichever is longer. Three assumed years, or any number of years needed to complete sixty, whichever is shorter, shall be added to the subscription period calculated in the insurance in case of the termination of the service by reason of death or complete disability.

 

The pension shall be calculated in the remaining cases on the basis of the actual subscription period of twenty years at least.

In the event of the return of the pensioner suspended from work due to unfitness or health disability, the pension allocated thereto for such reason shall be cancelled, and the remaining provisions of the Law shall apply thereto.

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CHAPTER TWO: RULES OF CALCULATION OF CONTRIBUTIONS - Article 15

Last updated 10/08/2024 17:40 PM

The employer in the private sector not having deducted the subscriptions of all or some of the workers thereof, or not having paid the subscriptions based on the real salaries, shall be enjoined to pay an additional sum amounting to 10 % of the value of the due subscriptions and such without any prior warning or notification.

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CHAPTER TWO: RULES OF CALCULATION OF CONTRIBUTIONS - Article 14

Last updated 10/08/2024 17:39 PM

The employer shall undertake the delivery of his share as well as the share of the insured in the due subscriptions to the Committee. In the event of a delay in the payment thereof, an additional sum amounting to 0.1 % of the due subscriptions shall be imposed thereon for every day of delay, and such without a need for a warning or notification.

The cases and conditions of exemption from such additional sum shall be determined by virtue of a decision issued by the Board of Directors.

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CHAPTER TWO: RULES OF CALCULATION OF CONTRIBUTIONS - Article 13

Last updated 10/08/2024 17:38 PM

Subscriptions shall be payable as of the first day of the month that follows the month for which such subscriptions are due. Such delay may be extended till the fifteenth of the said month.

Such subscriptions shall not be returnable.

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CHAPTER TWO: RULES OF CALCULATION OF CONTRIBUTIONS - Article 12

Last updated 10/08/2024 17:36 PM

The employer in the private sector must register the workers therefor, subject to the provisions of the present Law, before the Committee and such within one month at most from the date of their entry into service. The employer must provide the Committee with a statement of the names of the workers therefor whose service is terminated within one month at most from the date of the termination of such service.

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CHAPTER TWO: RULES OF CALCULATION OF SUBSCRIPTIONS - Article 11

Last updated 10/08/2024 17:24 PM

1 - The employer in the private sector must submit to the Committee in January of every year all data regarding the salaries of the workers therefor for the said month as well as their monthly contributions. Furthermore, he must provide the Committee on a monthly basis with any changes occurring with regards to the number of workers therefor or their salaries, and such on forms set by the Committee. Such data must be in conformity with the books and records held by the employer in accordance with the Labor Law.

2 - Should the employer not submit the data set forth in the preceding paragraph within the determined terms, conditions and dates, the payable contributions shall be calculated based on the last statement submitted to the Committee and such until the calculation of the effectively payable contributions.

3 - Should the data not be submitted, should they not be in line with the actual situation, or should there not be any records and documents that must be kept by the employer in accordance with the provisions of the present Law, the calculation of the due contributions shall be made by virtue of a decision issued by the Committee in accordance with the outcomes of the investigations thereof.

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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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Frequently Asked Questions

What periods may the Insured merge?

<p>• Previous service periods with any employer subject to the provisions of the Federal Decree-Law</p>
<p>•Previous service period prior to acquiring the UAE nationality</p>
<p>•Previous service periods in any entity determined by the Cabinet</p>

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

<p>• The individual must be a United Arab Emirates national </p>
<p>• The individual must be between the ages of 18 to 60 </p>
<p>• The individual must be medically fit to work upon appointment, as evidenced by an approved medical report</p>
<p>• He/she must work for an employer subject to the provisions of the law applied by the GPSSA</p>

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?

<p>&middot; 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</p><p>&middot; 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</p>

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

<p>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.</p>

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?

<p>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.&nbsp;This means the committee must be petitioned before taking legal action against the employer, and the appeal has a five-year deadline.&nbsp;</p>

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