Federal pension scheme

Obligatory registration for Emiratis

Public and private entities across the UAE must register their Emirati employees with the General Pension and Social Security Authority (GPSSA) from the first month of their employment.

Monthly and timely contributions result in pension and retirement benefits, end-of-service gratuity and compensation in case of a work-related disability or death. 

Registration of UAE nationals working in government and private sectors and contributing to their pension is mandatory under the provisions of Federal Law No. 7 of 1999 on pensions and social security, as amended.

Scope of the Pension Law

The provisions of the UAE’s pension law are applicable to employers in the government sector, including the federal government, local governments except Abu Dhabi and Sharjah, public companies and banks affiliated with the federal government. The law also encompasses employers in the private sector in all emirates except Abu Dhabi.

Conditions for registering an employee

For the employer to contribute to the pension, the employee should:

1. be a UAE national
2. not be less than 18 years; nor should he/she be more than 60 years
3. be medically fit upon appointment according to a medical report provided by a medical authority and approved by GPSSA.

Eligibility for pension

An Emirati national is entitled to a pension if he/she as an insured person reaches retirement age of 60 years and completes an insured service period of 15 years.

Early retirement pension

An Emirati national may be eligible for an early retirement pension if:

• an insured man reaches 55 years and completes 20 years of insured service
• an insured woman reaches 50 years and completes 20 years of insured service.

Related links

• Frequently Asked Questions on pension and social security – GPSSA
• GPSSA affirms mandatory registration and contribution for Emiratis working in government and private sectors in the UAE – GPSSA
• GPSSA clarifies the conditions for the participation of insured individuals and the subjection of employers based on the provisions of the UAE Pensions Law – GPSSA
• Pensioner Briefcase - GPSSA

Federal pension scheme 2023

The new Federal Decree Law No. 57 of 2023 on Pension and Social Security aims to enhance the flexibility of the pension and social security services in the UAE and to mitigate any gaps in services and policies provided to the UAE nationals working in the government and the private sectors.

Beneficiaries

The new Federal Decree Law is applicable to Emirati employees who join the labour market for the first time on or after 31 October 2023 in organisations participating in the GPSSA’s pension scheme.

Employees registered before that date will continue to be covered by the provisions of Federal Law No. 7 of 1999 on Pension and Social Security.

Key provisions of the 2023 law

Following are the key provisions of the new law:

• Raising the maximum pensionable salary for UAE nationals working in the private sector from 50,000 (fifty thousand )to 70 (seventy thousand) AED per month
• Calculating pension for both government and private sectors on the average monthly pensionable salary according to the last 6 years of service
• 7 cases of the insured’s entitlement to a retirement pension
• If the insured is a woman regardless of her marital status, she may request a retirement pension, where the minimum age and the subscription period may be reduced if she is a mother of 5 or more children
• Identifying the minimum age of the insured to 55 years and the subscription period to 30 years for the insured to be eligible for retirement pension
• The pensioner from the government sector or private sector, whose subscription period has reached 30 years, has the right to combine the pension with a salary from a new job
• The monthly contribution of the insured is 26 per cent of the pensionable salary. The insured employee pays 11 per cent and the employer pays 15 per cent. For insured citizens working in the private sector, the government pays 2.5 percent on behalf of the employer, if they receive pensionable salaries less than AED 20,000. This initiative by the government is aimed to promote employment of UAE citizens in the private sector.
• If an insured employee wishes to take unpaid leave (either to pursue postgraduate studies or to care for her children) he/she is allowed to maintain the subscription to the pension for the period of their leave in accordance with the terms and conditions set by GPSSA.

Learn more in the news coverage.

Find answers to FAQs about the federal law on pension and social security.

Learn about the key provisions of the federal law on pensions and social security.

Abu Dhabi pensions

In Abu Dhabi, Abu Dhabi Pension Fund manages pensions on behalf of Abu Dhabi-based and employed UAE nationals. In addition, the emirate of Abu Dhabi has a separate pension law; Law No. 2 of 2000 regarding Civil Retirement Pensions and Benefits in the Emirate of Abu Dhabi.

2023 law for pensions in Abu Dhabi

Abu Dhabi Pension Fund issued a law in 2023 that amended the retirement system in the emirate. Updates apply to all citizens working in public and private sectors, excluding retirees. Individuals already employed and insured will maintain all their acquired rights.

Key provisions of the 2023 law:

Key provisions of the 2023 law include:

• Increase in maximum pensionable sum to 100 per cent of deductible salary after completing maximum number of years' service
• Equality for UAE nationals in public and private sector by allowing combination of pension and salary payments from new job (available for those who have completed maximum number of years' service or reached retirement age)
• Standardisation of pension calculation process in both public and private sector, based on the average deductible salary for the last 6 years of service
• Introduction of optional retirement contribution payments for higher education students and female employees with children
• Introduction of option for women with five children or more to request early retirement benefits with a shorter service period
• Setting the minimum age eligibility for retirement at 55 with minimum service period of 25 years
• Limiting maximum deductible salary to AED 100,000 for individuals entering job market in the public or private sector
• Setting monthly contributions for insured individuals at 26 per cent of deductible salary
• Newly insured employees bear 11 per cent, while employer pays 15 per cent
• Deduction percentages of those insured before the 2023 law came into effect, will not be affected.

Retirement rules of Dubai Government

H. H Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Decree No. 21 of 2017 approving the retirement and pension procedures applicable to Dubai government employees. The decree aims to ensure equal opportunities for Dubai government employees and further protect the rights of pensioners.

According to the decree, Dubai government human resources department (DGHR) will form a committee to evaluate the retirement requests of employees. A representative of DGHR will chair the committee. The committee is composed of representatives from Dubai's Department of Finance, the General Secretariat of Dubai Executive Council and the General Secretariat of Dubai's Supreme Legislation Committee.

The decree also defines retirement procedures. Pursuant to the decree, Dubai government entities must refer their employees' retirement requests to DGHR. The application must clarify the reasons for retirement and provide all the required information and documents and meet any other requirements set by the committee. The government entity is responsible for completing the application, satisfying the requirements and completing the documents prior to submission to the committee.

DGHR is responsible for following up the committee's recommendations, including referring its recommendations to the General Secretariat of Dubai's Supreme Legislation Committee to issue the required legislation prior to submission to His Highness the Ruler for final approval.

Related links

• Pensions and Social Security- Dubai Government Human Resources Department

Pension for GCC nationals

A GCC citizen who works in another GCC country, has the right to enjoy pension in the same ways as he/she would enjoy if working in his/her own home country. He/she is eligible to receive pension as per the respective law of his/her country. Register GCC nationals in the Insurance Protection Extension Program, in coordination with GPSSA.