While expatriates working in the Government andPrivate sector are not eligible for pension, they are eligible for end-of-service benefits also known as gratuity. However, Emiratis working in both, the Government and Private sectors are eligible for pension provided they have fulfilled certain conditions as stipulated by the General Authority for Pension & Social Security (GAPSS). These include either reaching the retirement age of 60, or having worked for a minimum 20 years in total in a government/private sector job, provided that he/she has submitted his/her resignation.
Pension is calculated based on 60% of the last received salary. Pension funds are built up and invested by GAPSS from initial investments made by the employee and employer. In the Government sector, an employee contributes 5% of his salary towards the pension fund, while the government contributes 15%. Emiratis employed in the private sector also contribute 5% of their salary, the private sector employer contributes 12.5% and the government contributes 2.5%.
The government also guarantees a Social Security Allowance for women working in the local or federal government who are sole bread-winners for their Emirati children. Eligible women having Emirati children include divorcees, widows or those married to Emirati men with disabilities who are unable to work. For cases where the husband is unemployed, the woman must give a written declaration to this effect, to be eligible for Social Security Allowance.
To ensure that you receive your rightful pension benefits, all retirees and eligible pensioners are required to regularly update their data with GPSSA.
For more information, visit https://eservices.gpssa.gov.ae/en/Pages/default.aspx