UAE announces new Federal Law on Pension enhancing adaptability of social security services

UAE announces new Federal Law on Pension enhancing adaptability of social security services

The General Pension and Social Security Authority (GPSSA) has announced new Federal Decree Law No. 57 of 2023 on Pension and Social Security, raising the maximum contribution account salary for Emiratis working in the private sector from Dh50,000 to Dh70,000.

The new law aims to improve the policies of the GPSSA and its work framework, to guarantee the effectiveness and supportability of the financial resources of pensions, and to respect the authority’s future responsibilities.

It likewise aims to upgrade the adaptability of the pensions and social security services in the UAE. It additionally aims to mitigate any gaps in services and policies given to the UAE nationals working in the government and the private sectors.

Also, the law will bring further equality in benefits to urge UAE nationals to join private sector companies. The new law will be applied to Emirati employees who joined the labor market for the first time from the date of its publication. Current employees will continue to be covered by the provisions of the ongoing Federal Law No. (7) of 1999 on Pension and Social Security.