Legislation Details
- Full Title: Federal Law by Decree Concerning Pension and Social Security
- Law Type: Federal Law by Decree
- Law Number: [57] of 2023
- Issued Date: 02 Oct 2023
- Effective Date: 31 Oct 2023
- Official Gazette: No. 762
- Sector: Family and Community
- Status: Active
- Number of Articles: 99
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law by Decree regulates the pension and social security system in the United Arab Emirates. It establishes the General Pension and Social Security Authority (GPSSA) and sets out the rules and requirements for employee contributions, pension eligibility, calculation, and benefits. The law applies to all UAE national employees working in both the government and private sectors, with some exceptions. It aims to provide a comprehensive social security framework for UAE citizens, ensuring their financial security upon retirement or in cases of disability or death. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 1-2) The law is significant for businesses and individuals in the UAE as it mandates employer contributions and outlines the pension entitlement conditions. It also specifies the penalties for non-compliance, making it crucial for employers to understand and adhere to the legal requirements. The practical impact of this legislation is to safeguard the financial well-being of UAE nationals and their families, promoting social stability and economic development in the country. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 1-2)
What is the scope and purpose of this law?
The provisions of this Federal Law by Decree apply to all UAE national employees working for an employer, with some exceptions. The law does not apply to those already covered under the previous Federal Law No. 7 of 1999, such as pensioners and those who have received end-of-service gratuity under the previous law. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 2) The purpose of this law is to establish a comprehensive pension and social security system for UAE nationals, providing financial security upon retirement, disability, or death. It sets out the rules and requirements for employee contributions, pension eligibility, calculation, and benefits. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 1-2)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Government: Government of the UAE
- GPSSA: General Pension and Social Security Authority
- Minister: Minister of Finance
- BOD: GPSSA's Board of Directors
- BOD Chairman: The Chairman of the GPSSA's Board of Directors
- Employer: Government agencies, public bodies, and private sector employers of UAE nationals
- National: Anyone who holds UAE nationality
- Insured: Every UAE national employee working for an employer subject to this law
- Subscription Duration: The period of service for which the insured is entitled to a pension or end-of-service gratuity
- Pensioner: Anyone whose service has ended and is entitled to a pension
- Retirement Age: Sixty (60) Gregorian years
- Pension: The monthly amount due to the pensioner or their beneficiaries
- Beneficiary: Anyone entitled to a share of the pension due to the death of the insured or pensioner
- Period of Service: The periods of service subject to this law, including added periods
- Work Injury: Injury resulting from an accident during or because of work, or an occupational disease
- Occupational Disease: A disease that occurs most frequently among those working in a particular profession
- Incapable of Earning: A person with a disability reducing their ability to work by at least 50%
- Total Disability: A disability that completely and permanently prevents the insured from practicing any profession
- Partial Disability: A disability that permanently affects the insured's ability to work in their original profession
- Natural Death: Death not resulting from a work injury
- Competent Medical Committee: A medical committee formed to prove cases stipulated in this law
- Subscription Account Salary: The salary on which the employer's and insured's contributions are calculated
- Pension Account Salary: The salary on which the pension or end-of-service gratuity is calculated
(Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this law include: 1. The age of the insured must be between 18 and the retirement age of 60, and they must be medically fit to work. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 3) 2. Employers must deduct 11% of the insured's subscription account salary as the employee's contribution and pay an additional 15% as the employer's contribution to the GPSSA. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 4) 3. The subscription account salary must be calculated according to the specific rules for the government sector, private sector, and employees of regional/international missions. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 5) 4. The insured must continue to be subject to the law during periods of leave, secondment, delegation, or transfer, and the rules for calculating contributions in these cases must be determined by the GPSSA's Board of Directors. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 6) 5. Employers must submit the required medical report to the GPSSA when an employee subscribes to the system. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 3)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements under this law.
What rights and protections does this law provide?
This law provides the following rights and protections: 1. The insured has the right to add previous service periods to their subscription duration for the purpose of calculating their pension or end-of-service gratuity. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 7-8) 2. The law provides for pension entitlement in cases of retirement, disability, and death, as well as compensation for partial disability resulting from a work injury. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 13-17) 3. The law specifies the beneficiaries and conditions for their entitlement to a share of the pension upon the death of the insured or pensioner. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 21-22) 4. The law guarantees a minimum pension for beneficiaries and allows for the combination of multiple pensions. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 23-24) 5. The law provides for the payment of an end-of-service gratuity in certain cases. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 26)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the enforcement of this law are: 1. The General Pension and Social Security Authority (GPSSA): The GPSSA is responsible for administering the pension and social security system, including collecting contributions, managing pension accounts, and determining eligibility and benefits. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 1) 2. The GPSSA's Board of Directors (BOD): The BOD is responsible for setting the rules and controls for the implementation of this law, including determining the elements included in the subscription account salary and the rules for calculating contributions during periods of leave, secondment, or transfer. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 4-6) 3. The Minister of Finance: The Minister is responsible for issuing executive resolutions to implement the provisions of this law. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 42)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Federal Law by Decree.
What fees, charges, or financial provisions are specified?
The key financial provisions in this law include: 1. The insured's contribution rate is set at 11% of their subscription account salary. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 4) 2. The employer's contribution rate is set at 15% of the insured's subscription account salary, with the government bearing 2.5% of the private sector employer's share for employees with a subscription account salary less than AED 20,000. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 4) 3. The Cabinet may set a limit on the annual increase in the subscription account salary and reconsider the subscription rates for the employer and insured. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 4) 4. The minimum and maximum subscription account salary for the private sector may be modified by a decision of the Minister based on the GPSSA's Board of Directors' recommendation. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 5)
What exemptions or exceptions apply?
The law does not apply to the following categories: 1. Insured persons subject to the provisions of the previous Federal Law No. 7 of 1999. 2. Pensioners receiving a pension under the previous Federal Law No. 7 of 1999 or any preceding law, even if they join a new job. 3. Insured persons who have received an end-of-service gratuity under the previous Federal Law No. 7 of 1999 or any preceding law, even if they join a new job. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 2)
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms under this Federal Law by Decree.
What are the key deadlines and time limits?
The law sets the following key deadlines and time limits: 1. The official document proving the insured's age issued by the competent authority must be submitted upon first subscription, and any amendment to the recorded age must be made within one year of the subscription date. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 3)
How does this law interact with other UAE legislation?
This Federal Law by Decree repeals and replaces the previous Federal Law No. 7 of 1999 Promulgating Pensions and Social Security Law, as amended. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 43)
When did this law come into effect?
This Federal Law by Decree Concerning Pension and Social Security came into effect on 31 October 2023, the date of its publication in the Official Gazette. (Federal Law by Decree Concerning Pension and Social Security, 2023, Art. 44)
Source Documents
This article analyses Federal Law by Decree Concerning Pension and Social Security 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.