Legislation Details
- Full Title: Cabinet Resolution Regarding Inflation Allowance
- Law Type: Cabinet Resolution
- Law Number: 58 of 2025
- Issued Date: 08 May 2025
- Effective Date: 09 May 2025
- Official Gazette: No. 799
- Sector: Family and Community
- Status: Active
- Number of Articles: 26
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes an inflation allowance program to provide financial support to UAE nationals and their families to help offset the impact of rising costs of living. The resolution sets out the eligibility criteria, the components of the allowance (fuel, food, electricity and water), and the controls and procedures for disbursing the allowance. The program aims to assist low-income UAE citizens and families who are facing economic challenges due to inflation. (Cabinet Resolution Regarding Inflation Allowance, 2025) The inflation allowance is an important measure to support the financial well-being of UAE citizens, particularly those with lower incomes. By providing direct financial assistance for essential expenses like fuel, food, and utilities, the government is helping to alleviate the burden of rising prices and ensure that Emirati families can maintain their standard of living. This resolution demonstrates the UAE's commitment to social welfare and economic stability for its citizens. (Cabinet Resolution Regarding Inflation Allowance, 2025)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to establish an inflation allowance program for UAE nationals who hold permanent residency in the country. The purpose is to provide financial support to eligible individuals and families to help offset the impact of rising costs of living due to inflation. The resolution applies to beneficiaries of the UAE's social support programs as well as any other Emirati individuals who meet the specified eligibility criteria. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 2)
What are the key definitions under this law?
The key definitions provided in this resolution are:
- State: The United Arab Emirates
- Ministry: The Ministry of Community Empowerment
- Minister: The Minister of Community Empowerment
- Beneficiary: Any individual who meets the eligibility conditions for the inflation allowance
- Primary Beneficiary: The beneficiary in whose name the inflation allowance is approved and disbursed
- Social Assistance: Financial support provided by local government entities to individuals and families
(Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this resolution are: 1. The primary beneficiary or their spouse must be employed and covered by a UAE social insurance or pension fund, or be retired. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(1)(a)) 2. The primary beneficiary must be at least 21 years of age. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(1)(b)) 3. The family's total monthly income must be less than AED 25,000. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(1)(c)) 4. Each child beneficiary must be under 21 years of age. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(1)(d)) 5. Applications for the inflation allowance must be submitted to the Ministry using the designated form and including the required data, papers, and supporting documents. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 8)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements for the inflation allowance program. The only requirement is to submit an application to the Ministry using the designated form and providing the necessary supporting documents. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 8)
What rights and protections does this law provide?
The key rights and protections provided under this resolution are: 1. Certain categories of individuals are exempt from the requirement to be employed or covered by social insurance/pension funds, including senior citizens aged 60 and above, widowed or divorced women aged 45 and above, and widowed or divorced women under 45 with custody of children under 21. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(2)) 2. Children of a divorced primary beneficiary are included in the inflation allowance calculation if the beneficiary has custody of them. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(3)) 3. Orphans or children of persons serving a custodial sentence are entitled to a food allowance. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 6(2))
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the inflation allowance program are: 1. The Ministry of Community Empowerment, which is responsible for administering the program, issuing the necessary implementing resolutions, and determining the application procedures. (Cabinet Resolution Regarding Inflation Allowance, 2025, Arts. 8, 10) 2. The Minister of Community Empowerment, who proposes the program and approves the implementing resolutions. (Cabinet Resolution Regarding Inflation Allowance, 2025, Arts. 10, 11) The legislation does not specify any other government bodies or enforcement mechanisms beyond the Ministry and the Minister.
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of the Cabinet Resolution Regarding Inflation Allowance.
What fees, charges, or financial provisions are specified?
The key financial provisions in this resolution are: 1. Fuel Allowance: - AED 300 if the fuel price is between AED 2.1 and AED 2.85 per liter - AED 600 if the fuel price is between AED 2.86 and AED 3.6 per liter - AED 900 if the fuel price is AED 3.61 or higher per liter (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 5(2)) 2. Food Allowance: - AED 500 for the primary beneficiary - AED 500 for one Emirati wife - AED 250 for each child under 21, up to a maximum of 4 children (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 6(1)) 3. Electricity and Water Allowance: - AED 400 or the actual monthly consumption amount, whichever is lower, for one residential unit (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 7(1))
What exemptions or exceptions apply?
The key exemptions and exceptions under this resolution are: 1. Certain categories of individuals are exempt from the requirement to be employed or covered by social insurance/pension funds, including senior citizens aged 60 and above, widowed or divorced women aged 45 and above, and widowed or divorced women under 45 with custody of children under 21. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(2)) 2. Children of a divorced primary beneficiary are included in the inflation allowance calculation if the beneficiary has custody of them. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 3(3)) 3. Orphans or children of persons serving a custodial sentence are entitled to a food allowance. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 6(2)) The legislation does not specify any other exemptions or exceptions.
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms or procedures under the Cabinet Resolution Regarding Inflation Allowance.
What are the key deadlines and time limits?
The legislation does not specify any deadlines or time limits under the Cabinet Resolution Regarding Inflation Allowance.
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to the following UAE legislation: 1. Federal Decree by Law No. (23) of 2024 Regarding Social Support and Empowerment, which the inflation allowance program is based on. (Cabinet Resolution Regarding Inflation Allowance, 2025, Preamble) 2. Cabinet Resolution No. (57) of 2025 Regarding the Executive Regulation of Federal Decree by Law No. (23) of 2024 Regarding Social Support and Empowerment, which sets out the controls for the inflation allowance program. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 2) 3. Cabinet Resolution No. (52) of 2023 Regarding Inflation Allowances, which is repealed by this new resolution. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 11)
When did this law come into effect?
This Cabinet Resolution Regarding Inflation Allowance came into effect on the day following its issuance on 08 May 2025, as stated in Article 12. It was published in the Official Gazette No. 799 on 14 May 2025. (Cabinet Resolution Regarding Inflation Allowance, 2025, Art. 12)
Source Documents
This article analyses Cabinet Resolution Regarding Inflation Allowance for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.