The General Pension and Social Security Authority (GPSSA) in the UAE has announced that AED794,520,346.03 ($216.31 million) in pension payments will be distributed on Friday, July 26, 2024, benefiting 48,199 pensioners and beneficiaries. This marks an increase compared to July 2023, when AED711,323,785.25 was allocated to 46,835 recipients. This month saw 1,364 more pensioners and beneficiaries and an additional AED83,196,561 in payments.
Who are the eligible recipients?
The disbursements cover individuals under Federal Law No. (7) of 1999 for Pension and Social Security, along with those whose files are managed by the GPSSA on behalf of the Ministry of Finance, in accordance with applicable pension laws.
March 2024 pension increase
In March 2024, the UAE government increased pension payments for the month compared to the previous year, reflecting a rise in the number of beneficiaries. A total of AED766,457,286.56 ($208.7 million) in pension payments was released on March 27, 2024. Compared to March 2023, when approximately AED689.8 million was disbursed to pensioners, the value of payments for March 2024 has risen by over AED76 million.
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This increase is attributed to the addition of 1,525 individuals as beneficiaries, bringing the total number of eligible recipients to 47,940, as stated by the GPSSA.
Increasing monthly pension contributions for new Emirati employees
In December 2023, GPSSA announced an increase in monthly pension contributions for Emirati employees who joined the workforce after October 31, 2023. The contribution rate has been raised from 20 percent to 26 percent.
This adjustment in retirement contributions for new Emirati employees further follows the introduction of Federal Decree Law No. 57 on Pension and Social Security by the GPSSA on November 17, 2023.
The new law further aimed to maximize the utilization of an Emirati’s expertise over an extended period of time, ultimately serving the public interest. It also involves reassessing the calculation of retirement pensions, ensuring that their value increases in proportion to the number of years of employment.
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