Emiratis must complete at least 1 year in entity to receive end-of-service benefits

The General Pension and Social Security Authority (GPSSA) has said that insured Emiratis must complete a minimum of one year in their jobs to be entitled to receive their end-of-service payment from the Authority.

The minimum period for an insured individual to spend at an entity is 11 months and one day, given that the ‘one day’ is considered ‘a month’ as per the UAE Pension Law.

According to GPSSA’s 2022 statistics, a total of 1,461 out of 6,138 Emiratis were not entitled to receive their end-of-service benefits due to terminating their employment contracts in less than one year. The Authority reported 24% of end-of-service cases did not meet the proper entitlement conditions.

The UAE Pension Authority explained that the longer the employment duration, the more benefits for an insured individual, including an increase in the value of the end-of-service reward.

The Authority noted that

the salary by which a bonus is calculated is the salary of the pension account itself, where insured individuals receive a 1.5 salary for each of the first five years of service, a two months’ salary for each of the following five years of service and a three months salary for each of the next five years of service.

During this period, insured persons receive all their insurance rights; for example, the maximum pension of 100 percent is granted to individuals exposed to a work-related disability or in case the insured passes away, which is exactly what an insured individual who worked and contributed for 35 years receives.

Additionally, insured Emiratis may choose to add employment periods when shifting entities. The GPSSA called on all their new, current and previous members to verify their registration and contribution payments from the moment they are recruited into an entity.

News Source: Emirates News Agency

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