Determine how to know the pension and bonus for employees in the Emirates
The General Pensions and Social Security Authority in the United Arab Emirates announced the determination of how to know the retirement pension and bonus for employees in the country.
Find out how employees in the Emirates can get information on their pensions and bonuses.
The General Pensions and Social Security Authority in the United Arab Emirates made an announcement regarding the decision of how employees in the country might determine their retirement pension and bonus upon leaving their jobs.
Determine how to find out the pension and bonus for employees
Determine the procedures for determining the employees' pensions and bonuses, The General Authority for Pensions and Social Security explained that the first step in the calculation method is to know the salary for the purpose of calculating the employee's contribution. They also mentioned that the specificity of the method of calculating the components of the employee's total salary and the elements that are included in the salary for the purpose of calculating his contribution in some local governments must be taken into consideration. It was clear from the report that after... It is necessary to calculate the average contribution account salary before determining the contribution account salary. This calculation is performed for workers in the government sector over the course of their most recent three years of work, or over the course of their entire subscription period if their service period is less than that. On the other hand, it is performed for workers in the private sector over the course of their most recent five years of work, or over the course of their entire subscription period. If you mention more than that, the subscription account salary for each of the last three or five years of work is multiplied by 12 months in order to compute the average salary for the last three or five years of service, depending on the kind of sector. Then, these amounts are collected and divided by 36 months for workers in the government sector, and divided by 60 months for workers in the private sector. The result of this process will be the average contribution account salary, and it will represent the third and final step in the calculation of the pension account salary or bonus. It should be noted that the pension is calculated based on the average contribution account salary according to the years of service, where a service period of 20 years grants the pension to the insured at a rate of 70% of the average salary of his contribution account, and the insured is granted an increase of 2% for every year exceeding 20 years, and it should also be noted that there are some instances in which the pension is granted over 15 years at a rate of 60%, and the maximum pension is grante to the insured after 20 years of service. A reward of three salaries from the pension account will be given to the covered person when they have completed one year of service and have accrued more than 35 years of service together.
Components of the gross salary of employees in the UAE
The various components that make up an employee's gross compensation in the UAE, This salary is comprised of a total of five components in the public sector, including the basic in addition to the bonuses and monthly allowances specified by the Pensions Law, including the cost of living allowance, the children's allowance, the citizen's social allowance, and the housing allowance, with a cap of 300,000 thousand dirhams, whereas in the private sector, it includes everything stipulated in the employment contract up to a limit. The cap is 300,000 thousand dirhams. The most that can be charged is 50,000 dirhams.
How to calculate the retirement pension for employees in the UAE
How to figure out how much money employees would receive when they retire in the UAE, Let us assume that the information shown above is accurate, and that an employee who has been with the company for 20 years has a subscription account with an average pay of 22,166 dirhams. The income from his pension account that he will receive after he retires will be equal to seventy percent of the average salary from his subscription account, which will be calculated based on the number of years he has worked for the company; therefore, (22,166 times seventy percent) will be multiplied to arrive at the total amount. It is anticipated that his pension will amount to around 15,516.2 dirhams.