Employment benefits in the UAE differ significantly depending on whether an employee is a UAE national or a foreign national. While expatriate employees are generally entitled to end-of-service gratuity, Emirati employees are covered by a statutory pension system. Over time, this pension framework has evolved, and today two separate pension laws may apply to Emirati workers, depending on when they first entered insured employment.
For employers, HR managers and Emirati employees, understanding which pension law applies, how monthly contributions are calculated, and how retirement benefits are determined is essential for legal compliance. The 2023 Pension Law applies to Emirati nationals first employed and registered with the General Pension and Social Security Authority (GPSSA) on or after October 31, 2023. Those employed before this date remain subject to the 1999 Pension Law, together with its subsequent amendments.
Under the 2023 Law, employees must be UAE nationals, aged between 18 and 60, and meet prescribed medical fitness requirements at the time of joining. Employers are legally required to register eligible Emirati employees with the GPSSA within 30 days of the commencement of employment. Failure to do so may result in penalties, including backdated contribution liabilities.
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