Legislation Details
- Full Title: Federal Law Promulgating the Pensions and Social Security Law
- Law Type: Federal Law
- Law Number: [no number] of 1999
- Issued Date: 16 Feb 1999
- Effective Date: 28 Apr 1999
- Official Gazette: No. 331
- Sector: Family and Community
- Status: Active
- Number of Articles: 178
- Chapters/Parts: 0
- Amendments: 3
Summary
The Federal Law Promulgating the Pensions and Social Security Law regulates the pension and social security system for UAE nationals employed in both the public and private sectors. The law establishes the General Authority for Pensions and Social Insurance (the Authority) to administer the pension system, set contribution rates, and manage pension payments. It covers eligibility, contribution requirements, pension calculations, end-of-service benefits, and penalties for non-compliance. The law aims to provide a comprehensive social security framework for UAE citizens and ensure their financial security upon retirement or in the event of work-related injuries or death. It is a key piece of legislation governing the social welfare of the UAE population. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1-2)
What is the scope and purpose of this law?
The law applies to all UAE nationals employed in the government sector, including federal government bodies, public institutions, general establishments, general companies, and banks where the federal government is a shareholder. It also covers UAE nationals employed in the private sector by any natural or legal person. The law's purpose is to establish a comprehensive pension and social security system for UAE citizens, including provisions for end-of-service benefits, pensions for government officials, and penalties for non-compliance. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1-2)
What are the key definitions under this law?
- State: The United Arab Emirates
- Authority: The General Authority for Pensions and Social Insurance
- Board of Directors: The Board of Directors of the Authority
- Employer: In the government sector, federal government bodies, public institutions, general establishments, general companies, and banks where the federal government contributes, as well as local government bodies. In the private sector, any natural or legal person employing UAE nationals for a salary.
- Insured: Every UAE national for whom the law's provisions apply
- Subscription Period: The duration of service for which the insured person deserves a pension or remuneration
- Pensioner: Everybody whose service has terminated and deserves a pension
- Pensioning off age: The age of sixty
- Pension: The amount of money paid regularly by the Authority to the pensioner or their deserving persons
- Deserving person: Every person who deserves a portion of the pension upon the death of the insured person or pensioner
- Work injury: An injury caused by an accident during or due to work, or a work-related disease
- Work-related disease: A disease that spreads among people of the same or different occupations
- Total disability: A disability that permanently prevents the insured person from performing any occupation or job
- Partial disability: A disability that permanently affects the insured person's ability to perform their original occupation or earn a living
- Natural death: Death not caused by work-related injuries
- Subscription Account Salary: The basis for calculating contributions, varying for government, private, and official sectors
- Pension Account Salary: The basis for calculating pensions, also varying for different sectors
(Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations: 1. Employers in both the government and private sectors must pay monthly contributions to the Authority at a rate of 15% of the insured person's subscription account salary. For private sector employers, the government bears 2.5% of this contribution as support. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) 2. Insured persons must pay monthly contributions to the Authority at a rate of 5% of their subscription account salary. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) 3. Employers must pay additional amounts due to the Authority for late payment of contributions. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) 4. The Authority must set up executive rules and conditions for employers and self-employed persons to benefit from the law, subject to the Minister's approval. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 3)
What licensing, registration, or approval requirements exist?
The law does not specify any licensing, registration, or approval requirements for individuals or companies. It focuses on the obligations of employers and insured persons to contribute to the pension system administered by the General Authority for Pensions and Social Insurance. The Authority is responsible for setting the executive rules and conditions for benefiting from the law, which must be approved by the Minister. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 3)
What rights and protections does this law provide?
The law provides the following key rights and protections: 1. Insured persons are entitled to a pension upon reaching the pensioning off age of 60, calculated based on their subscription account salary and length of service. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1) 2. Insured persons who suffer a work-related injury or illness are entitled to compensation, including for total or partial disability. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1) 3. Deserving persons (e.g., family members) are entitled to a portion of the pension upon the death of the insured person or pensioner. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1) 4. Insured persons are entitled to add certain prior service periods to their subscription period to increase their pension eligibility. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 4)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcing and administering this law are: 1. The General Authority for Pensions and Social Insurance (the Authority): Established by the law to manage the pension system, set contribution rates, and make pension payments. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1) 2. The Board of Directors of the Authority: Responsible for approving the executive rules and conditions for benefiting from the law. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 3) 3. The Minister of Finance: Responsible for issuing the regulations and decisions necessary to implement the law. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 6)
What are the penalties for non-compliance?
The law specifies the following penalties for non-compliance: 1. Imprisonment for a period not exceeding one year and/or a fine not exceeding AED 10,000 for any employer who fails to pay the required contributions to the Authority. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 58) 2. Imprisonment for a period not exceeding one year and/or a fine not exceeding AED 10,000 for any employer who fails to provide the Authority with the required information or documents. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 59) 3. Imprisonment for a period not exceeding one year and/or a fine not exceeding AED 10,000 for any person who provides false information or documents to the Authority. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 60) 4. Imprisonment for a period not exceeding one year and/or a fine not exceeding AED 10,000 for any person who impersonates an insured person or pensioner to obtain benefits. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 61)
What fees, charges, or financial provisions are specified?
The law specifies the following financial provisions: 1. Insured persons must pay monthly contributions to the Authority at a rate of 5% of their subscription account salary. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) 2. Employers must pay monthly contributions to the Authority at a rate of 15% of the insured person's subscription account salary. For private sector employers, the government bears 2.5% of this contribution as support. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) 3. Employers must pay additional amounts due to the Authority for late payment of contributions. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) 4. The Minister may amend the minimum and maximum limits of the subscription account salary based on the financial situation of the Authority. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1)
What exemptions or exceptions apply?
The law does not specify any exemptions or exceptions to its scope of application. It applies to all UAE nationals employed in both the government and private sectors, without any exclusions mentioned. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1-2)
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms or procedures. It focuses on outlining the pension system, contribution requirements, and penalties for non-compliance, without addressing how any disputes would be handled under the law. (Federal Law Promulgating the Pensions and Social Security Law, 1999)
What are the key deadlines and time limits?
The law specifies the following key deadlines and time limits: 1. The law shall be put into force after two months from the date of its publication in the Official Gazette, except for the private sector, which shall be enforced after six months from the date of publication. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 8) 2. The pension account salary is calculated based on the average subscription account salary for the last three (or five, for the private sector) years of the insurance subscription period, or the entire subscription period if it is less. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 1)
How does this law interact with other UAE legislation?
This law replaces the following previous federal laws: - Federal Law No. (13) of 1974 regarding Pensions & Retirement Bonuses for Employees and Civil Servants - Federal Law No. (14) of 1974 regarding the Pensions & Retirement Bonuses of the Prime Minister, His Deputy & the Ministers - Federal Law No. (2) of 1983 regarding Determination of Pensions for Members of the National Federal Council - Federal Law No. (1) of 1984 regarding Retirement Pensions and Bonuses for Nationals Employed by Institutions, Establishments, Companies and Banks where the Government is a Share-holder (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 2) The law also references several other federal laws that it is issued in accordance with, including laws related to the jurisdiction of ministries, nationality and passports, the civil service, and labor relations. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Preamble)
When did this law come into effect?
This law was issued on 16 February 1999 and came into effect on 28 April 1999, two months after its publication in the Official Gazette. For the private sector, the law was enforced six months after its publication, on 28 October 1999. (Federal Law Promulgating the Pensions and Social Security Law, 1999, Art. 8)
Source Documents
This article analyses Federal Law Promulgating the Pensions and Social Security Law 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.