GPSSA Advises Insured Emiratis To Merge Employment Years For Lucrative Pension Eligibility

Emiratis planning for retirement need to ensure their employment years are continuous and meet the required contribution period. The General Pension and Social Security Authority (GPSSA) has clarified that a minimum of 15 years is necessary to qualify for a retirement pension, with eligibility starting at age 60. This information is part of GPSSA's April 2025 campaign to raise awareness about pension benefits.

Federal Law No. 7 of 1999 stipulates that Emirati employees who voluntarily resign must have completed 20 years of service and reached age 50 to receive a pension. For those under Federal Law No. 57 of 2023, the requirements are 30 years of service and reaching age 55. These laws ensure that individuals meet specific criteria before accessing retirement benefits.

Maintaining uninterrupted employment is crucial for pension eligibility. Individuals can merge previous and subsequent employment periods under Federal Laws No. 7 of 1999 and No. 57 of 2023 or use the "Shourak" programme, which assists those entering the labour market from July 1, 2023, in merging their service years.

If these conditions are not met, individuals may need to restart saving for their pension entitlement from scratch. To avoid this, they can opt to merge their employment years while bearing any financial costs associated with this decision. This ensures they preserve their previous service years upon meeting the minimum eligibility criteria.

Under Federal Law No. 7 of 1999, after completing 20 years of service, an insured person receives 70% of their pension account salary. This percentage increases by an additional 2% for each year worked beyond the initial period, up to a maximum of 100% after 35 years.

Federal Law No. 57 of 2023 requires a minimum of 30 years in service for pension eligibility. The pension is calculated at a rate of 2.67% per year up to the first three decades and increases to a rate of 4% for each year beyond that until reaching full pension benefits after completing up to five more years.

The insured receives three salaries from the pension account for each year worked beyond the initial five-year extension period after completing the maximum service duration under these laws.

This structured approach ensures that Emiratis are well-prepared for retirement by understanding and meeting all necessary requirements outlined in federal laws governing pensions.

With inputs from WAM