UAE Announces Pension Law Update for Emiratis
The General Pension and Social Security Authority (GPSSA) in the UAE has introduced an important update to pension rules for Emiratis in the workplace. As of October 31, 2023, Decree-Law No.57 of 2023 on Pension and Social Security will be applicable to Emiratis entering the workforce for the first time with employers affiliated with the GPSSA.
Affiliated entities include UAE-based federal and government sector employers, excluding those in Abu Dhabi and Sharjah, as well as private sector employers, excluding Abu Dhabi.
Private sector entities headquartered anywhere in the UAE are subject to the pension law, including their branches in other emirates. Entities headquartered in Abu Dhabi, along with their branches in other parts of the UAE, follow the Abu Dhabi pension law.
It’s crucial to note that all insured individuals with employers affiliated with the GPSSA must familiarize themselves with the new law’s registration and contribution provisions. Stay updated on relevant information through GPSSA’s news releases and social media platforms.
Insured individuals contributing to GPSSA before October 31 will remain covered by the provisions of the existing Federal Law No. 7 of 1999 for pension and social security, even if they change employers post that date. Individuals receiving end-of-service gratuity as per Pension Law No.7 of 1999 and returning to work after October 31 are also covered by the current law.
Notably, the new law does not apply to pensioners covered by Pension Law No.7 of 1999, even if they return to work for GPSSA-registered entities. They will continue to be covered by the existing law without any changes.
Stay informed about the latest developments in UAE pension laws to ensure compliance with regulations affecting your workforce.