The UAE issues a new federal law decree regarding workers in the country
Today, Friday, the General Authority for pensions and social insurance of the United Arab Emirates made an announcement regarding the issuing of a decree by the federal government regarding a new law regarding pensions.
According to a tweet that was posted by the authority on the social networking site "X" Twitter in the past, the law is applicable to new employees as well as employees who will enter the labor market for the first time beginning from the date that the law enters into force in the entities that are participating in the authority. Additionally, the current pension law continues to apply to employees who are already employed.
The authority emphasized that the most notable aspect of the new law is that it will increase the maximum subscription wage for citizens working in the private sector from 50,000 dirhams to 70,000 dirhams. This is the most noticeable element of the new law.
She went on to say that the law allows for the unification of the method for calculating the pension between the public sector and the private sector. This is done on the basis of the average income that is used to calculate the contribution for the most recent six years of service.
Cases in which the insured is entitled to a retirement pension
As a result of the new rule, which enables married, divorced, or widowed women who have five children or more to apply for a pension at an earlier age and for a shorter payment term, the commission was able to identify seven instances in which the insured were entitled to a pension.
Minimum pension entitlement
A minimum pension entitlement has been established at the age of 55, with a contribution period of thirty years. Additionally, the law ensures that citizens working in the public and private sectors are treated equally by allowing them to combine their pension and salary from a new job if the contribution period reaches thirty years.
It was brought to the attention of the authorities that the value of the monthly payments for the insured has been established at 26% of the salary of the subscription account, and that the insured bears 11% of these contributions.
For citizens working for him whose subscription account earnings are less than 20,000 dirhams, the employer is responsible for 15 percent, and the government is responsible for 2.5 percent of the employer's part in the private sector. This is done to encourage the employer to hire citizens.
With the fifteenth annual Global Retirement Index for 2023, Mercer, in conjunction with the Chartered Institute of Financial Analysts, published the report on October 17th.
Improving the outcome of the retirement system in the United Arab Emirates
The result of the United Arab Emirates' (UAE) pension system has improved, and it now ranks 23rd globally among countries with robust pension systems, such as the United States of America, Singapore, and France.