Revealed: End-of-service, other benefits received by Emiratis in the UAE
GPSSA disbursements so far this year see an increase over last year
Abu Dhabi: The General Pension and Social Security Authority (GPSSA) has spent Dh2,671,998,000 from January to June 2024, out which Dh2,315,507,000 was disbursed to pensioners, Dh287,438,000 as an end-of-service gratuity and Dh40,892,000 as compensations for work-related injuries and deaths.
This marks an increase of Dh218,743,000 in payment disbursements compared to the same period last year, during which the value of pension, end-of-service gratuity and compensation expenses amounted to Dh2,453,255,000.
Pension disbursements
Pension is an amount that a person looks forward to receiving once retired, since this is the time when insurance benefits are received after many years of contributing on a monthly basis.
Under Federal Law No. 7 of 1999, Emiratis are entitled to a pension upon reaching the age of 60, given that they have spent 15 years in employment. They are also entitled to receiving a pension in the event of resignation after completing 20 years of service. To receive this pension however, they must reach the age of 50. Federal Law No. 57 of 2023 stipulates that an insured must be registered, complete 30 years of service and reach the age of 55.
End-of-service gratuity
An insured Emirati, who is not entitled to a pension upon leaving his/her job, is entitled to receive an end-of-service gratuity as long as he/she has spent a minimum of one year working. The calculation method is as follows: Service period one to five years: 1.5 months’ salary; next five years: Two months’ salary; and subsequent five years: Three months’ salary.
Compensation
In cases where an insured employee has died or has suffered from a total disability due to a work-related injury, both federal laws state that pension is disbursed if an insured’s contribution period has reached 35 years or on the basis of his/her actual service period, whichever is longer.
An insured suffering from a partial disability resulting from a work-related injury is entitled to receiving a compensation estimated in proportion to the disability sustained, multiplied by Dh75,000.
Compensation only becomes valid upon submitted proof of death or disability by a competent medical committee.
If an insured’s employment has ended due to a natural death, a one-time compensation amounting to Dh60,000 is distributed to the heirs as per Sharia law, in addition to the due monthly pension amount as per the provisions of the Federal Pension Law.
In case of a pensioner’s death, the law stipulates the payment of a death grant equal to three pension account salaries in one lumpsum to those who were his/her dependents prior to death, in addition to the retirement pension which is also distributed to dependents.