UAE enhances job-switching flexibility to benefit expatriate employees
The General Pension and Social Security Authority (GPSSA) of the UAE has recently made changes to the "Shourak" program that enable greater employment mobility.
Enhanced Flexibility for UAE Employees When Switching Jobs
These modifications enable Emirati employees to submit'merge' requests within a generous three-month window from the commencement of a new employment, significantly expanding the timeframe from the previous one-month constraint.
The 'Shourak' program is a crucial avenue for insured employees, as it empowers them to merge their service years, allowing them to fulfill the required pension period and reap its associated benefits.
After July 1, 2023, requests submitted to the GPSSA must adhere to the updated regulations of the 'Shourak' program. As a result of applications being received after the initial one-month deadline, this change was made.
Valid Requests and Prerequisites
In order to ensure the validity of these requests, the GPSSA has outlined specific prerequisites. Insured individuals must initiate a request with their current entity before the termination of their service period.
Additionally, they must commit to an agreement declaration indicating that they opt out of receiving the end-of-service gratuity. Subsequently, they are obliged to secure a new employer within six months of the conclusion of their service period. Finally, the request to merge their services must be submitted within a window of three months from their commencement with the new entity.
Ensuring the Eligibility for End-of-Service Gratuity
It is vital to note that for insured individuals to become eligible for the end-of-service gratuity, they must have accumulated at least one year of service within a given entity. These developments offer an invaluable opportunity for Emirati employees to navigate transitions between employers while safeguarding their pension benefits and ensuring a smooth journey to their retirement future.
The extended window for 'merge' requests is set to make the process more convenient and accessible, underscoring the UAE's commitment to enhancing the welfare of its workforce. These amendments reflect the nation's dedication to facilitating smoother career transitions and bolstering the long-term financial security of its citizens and residents.