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21 April 2024

GPSSA: New Federal Decree Law No. 57 of 2023 encourages Emiratis to join labour market


The General Pension and Social Security Authority (GPSSA) said that the new Federal Decree Law No. 57 of 2023 regarding pension and social security correlates with the UAE governments efforts in encouraging Emiratis to join the labour market through offering equal pension and social security opportunities across both government and private sectors.

GPSSA explained that one of the most crucial steps introduced in the new law includes an increase in the contribution account ceiling, which was previously AED50,000 and raised to AED70,000 similar to the contribution account salary for insured individuals employed in international and political missions who are included in the pension law; AED100,000 is now considered a maximum contribution account salary for employees working in the government sector.

Additionally, the average pension account salary for employees across both government and private sectors is based on the last six years of work or for the entire contribution period if the service period is less than that, thus offering employees equal opportunities under Law No. 57 of 2023.

The new law provides insured Emiratis the opportunity to merge both their pension and salary given that they spend 30 years of service in their entity, regardless of whether they work in a government or private sector, versus the 25-year service period required to be able to merge pension and the contribution account salary which was limited to employees working in the government sector solely, as per federal law No. 7 of 1999.

Private sector employees whose contribution account salaries are less than AED20,000 are supported by the UAE government as per law no. 57 for 2023, who bear 2.5% of the entities share as a means of supporting the private sector to recruit Emiratis, leaving the employer responsible in paying 12.5% instead of 15%.