ABU DHABI, 9th October, 2023 (WAM) — Insured Emirati individuals, during each career stage, can vastly benefit from receiving a high pension amount and/or end-of-service gratuity, given that they are well aware of the pension and social security conditions they are entitled to, from the moment they are employed and with each passing year.To receive the highest retirement pension possible and secure an insured Emirati’s post-retirement future expenditures, the General Pension and Social Security Authority (GPSSA) highlighted the benefits of working for the longest period as part of the “End it Right” campaign, which offers detailed information about the advantages received with increased years of employment and a possible salary increase, which results in obtaining a higher pension and end-of-service gratuity.To specify, insured Emiratis are required to understand the importance of paying contributions to their account salaries with the GPSSA each month and are responsible for following up with their entit
ies about the amounts disbursed every month, whether employed in a government or private sector.Employers, on the other hand, are mandated to register Emiratis with the GPSSA by one month from their joining date. The insured must then pay their share in contributions for 5% of the contribution calculation salary, and the entity deducts that amount from the insured’s salary and transfers it to the GPSSA on a monthly basis within the first 15 days of each month.From here, the insured Emirati must be aware of the type of advantages they are entitled to receive the highest pension and end-of-service gratuity, and that can only increase with long employment years and salary increases, which result in increasing the value of the contribution calculation salary, thus a higher pension and end-of-service gratuity.It is worth noting that a pension becomes payable on the next day of service termination and increases in value with a longer service period based on the average of the contribution calculation salary for the
last three years of service in the government sector (i.e. total contribution calculation salary for the previous three years divided by 36), and for the last five years of service in the private sector (i.e. total contribution calculation salary for five years divided by 60).Additionally, the insured is offered a gratuity against extra employment years at a rate of a three-month salary per year given that they have worked more than 35 years; as an example, an insured whose service period lasts 38 years and receives a contribution calculation salary of AED25,000 receives a gratuity of AED275,000 (3 x AED25,000) plus retirement pension. An end-of-service gratuity is due against each year of service–the more the individual works, the higher the end-of-service payment. Gratuity due against each year of service, starting from one to five years, is calculated based on a 1.5-month salary. A two-month salary is granted for the next five service years, and a three-month salary is granted for the subsequent five year
s (ten years employment duration or above). In case of a service termination, the insured is entitled to a gratuity for the full month.Insured Emiratis are encouraged to learn more about the contribution account salary and how it is calculated by closely following GPSSA’s “End it right” awareness campaign, available on all of GPSSA’s official news platforms, including news releases and social media posts.
Source: Emirates News Agency