What Is the New Pension System in Dubai?

by Nisha Sharma SEO Executive

UAE citizens who work with governmental or private bodies are eligible for retirement and pension benefits after they reach 49 and have served for at least twenty years. The GCC nationals who find employment in the UAE are pension entitled following numerous schemes related to their home countries. Expatriate employees do not receive National pension scheme returns but are entitled to some end-of-service benefits known as severance or gratuity pay.


Federal retirement pensions


The federal law of UAE number 7, established in 1999, concerns the law of social security and pensions. This law was applied as a federal law that applies to nationals of UAE men and women working in private and governmental organizations. 

The NPS applications also cover the following groups of people who are employed in the UAE:

  1. Emirati who are self-employed
  2. Emirati employers
  3. Citizens of the GCC countries.


Age of retirement


According to the National pension scheme returns, the retirement age of UAE citizens is generally 49, and for expatriate citizens, it can go up to 60. Expatriates older than sixty years are allowed to work till 65 after achieving approval from the Human Resource Minister and the Emiratisation. After the age of sixty, labour face renewals annually.




The nationals of UAE working in private and government sectors are readily available for National Pension Scheme benefits and social security after they reach 49 by serving a minimum of 20 years. Emirates can receive the benefit of pension according to the 1999 Federal law number 7. The pension plan starts the day the termination of service does and ends when the person dies, given he has no beneficiaries. Article number 16 provides law for cases where nationals who are ensured are entitled to pensions.


Registration for the pension benefit


An employer must register for the Emirate Employee pension scheme regardless of their position in a private or governmental job. This process should take place within no more than one month from the date they join. The person will have to carry a family book, Emirates ID, and proof of employment to enrol in a pension scheme from the federal government and pay the NPS contribution online payment.

At the level of federal plans, the General Pensions and Social Security Authority acts as a body of federal powers responsible for deciding adequate National Pension Scheme benefits for all the nations of UAE working in entities. These entities can include federal ministries and local governments such as Sharjah, Dubai, Ajman Umm Al Quwain, Ras Al Khaimah, and Fujairah emirates.


Once the employee successfully registers with the GPSSA by filing an NPS application, the funds can be deposited in his account for the following reasons-

  1. If the employer and employee contribute to the fund, it will be used as an end-of-service benefit for the employee.
  2. The insured employee contributes an amount that equates to five per cent of his salary every month. 
  3. Parallelly, the employer will successfully contribute fifteen per cent of his entire salary. 
  4. If the employer has a company they own privately, the employer will contribute about twelve per cent of his salary, and the government will contribute 2%.


For any other further queries, contact us here. We at Alankit Limited provide various e-governance, insurance, auditing, and other financial services for the convenience of Indian citizens in the United Arab Emirates. 

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About Nisha Sharma Senior   SEO Executive

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Joined APSense since, August 1st, 2017, From Delhi, India.

Created on Aug 23rd 2021 05:06. Viewed 289 times.


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