GPSSA Clarifies Federal Law No. 57 of 2023 for Emirati Employees

The General Pension and Social Security Authority (GPSSA) has recently shed light on the Federal Law No 57 of 2023, which pertains to pension and social security for Emirati employees. This law, which marks a significant update in the UAE's pension and social security landscape, is specifically designed to cover Emirati employees who commence their employment on or after the 31st of October, 2023. The law is applicable across various sectors in the UAE, including federal, government, and private sectors in Dubai, Ajman, Ras Al Khaimah, Fujairah, and Um Al Quwain. Additionally, it encompasses private sector employees in Sharjah. However, it's important to note that Emirati employees in Abu Dhabi fall under the Abu Dhabi Pension Fund, while government employees in Sharjah are covered by the Sharjah Social Security Fund.

Under the umbrella of its "Know Your Law" campaign, the GPSSA has clarified that the provisions of Federal Law No 57 of 2023 do not apply to Emirati employees already covered by Federal Law No 7 of 1999 for Pension and Social Security and its amendments. This includes individuals who have joined a new employer during or after the specified date of 31st October 2023. These employees will continue to be governed by the provisions of Law No 7. This stipulation also extends to Emiratis who have received their end-of-service gratuity or pension in accordance with Law No 7 and decide to return to work post-31st October 2023.

The GPSSA has reiterated that Federal Decree Law No (57) of 2023 is tailored for newly recruited Emiratis or those transitioning from other pension schemes, provided they meet specific criteria. These criteria include being a UAE national, aged between 18 and not more than 60 years old, and possessing a medical fitness certificate from an official UAE-based medical authority upon joining an entity. Furthermore, the GPSSA highlights that any amendments related to the insured’s age must be submitted within one year from the registration date along with proof from a competent UAE authority.

For those seeking more information or clarity on Federal Law No 57 of 2023, the GPSSA has made available a copy of the law in both English and Arabic on its website under the Laws and Regulations section. This initiative is part of the Authority's commitment to ensuring that all Emirati employees are well-informed about their rights and obligations under the new law.

This comprehensive approach by the GPSSA underscores its dedication to keeping all stakeholders informed about significant legislative changes affecting pension and social security for Emirati employees. By providing clear guidelines and making resources readily available, the Authority aims to facilitate a smooth transition for all parties involved under the new legal framework.

With inputs from WAM