UAE: ‘Shourak’ scheme for merging Emiratis’ gratuity begins July 1

Abu Dhabi: The ‘Shourak’ scheme enabling Emiratis to merge end-of-service benefits when switching careers comes into effect July 1.

The scheme, which translates as preference in English, was launched by the General Pension and Social Security Authority (GPSSA) for insured Emiratis seeking to merge previous and current employment periods in case of a career switch in order to increase years of service, without any additional cost.

Shourak is organised as part of a performance agreement inaugurated last year for federal and government authorities, which was signed in the presence of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

Benefits

Shourak required GPSSA to update its work mechanisms to allow insured individuals whose employment service ends and who are entitled to receive an end-of-service benefit to agree to not be paid the value of their end-of-service gratuity for previous service years, but rather merge it with their subsequent service without having to incur the additional costs that arise from the calculation formula eligible for Emiratis employed in the government and private sectors.

The project supports citizens working in the government and private sectors by facilitating the procedures to join the service until the completion of the period of service that qualifies them to obtain their retirement pension, which is the “ultimate goal” of participating in pension and social insurance – to make sure insured individuals are not burdened in any way, especially when going through a career shift, GPSSA said.