Federal Law Promulgating the Pensions and Social Security Law
Promulgating the Pensions and Social Security Law
We, Zayed Bin Sultan Al-Nahyan, President of the United Arab Emirates,
- Having taken cognizance of the Constitution, and
- Federal Law No. (1) of 1972 regarding the jurisdictions of Ministries and powers of Ministers, and its amending laws, and
- Federal Law No. (17) of 1972 regarding Nationality and Passports and its amending laws, and
- Federal Law No. (8) of 1973 regarding the Civil Service in the Federal Government, and its amending laws, and
- Federal Law No. (13) of 1974 regarding Pensions & Retirement Bonuses for Employees and Civil Servants and its amending laws, and
- Federal Law No. (14) of 1974 regarding the Pensions & Retirement Bonuses of the Prime Minister, His Deputy & the Ministers and its amending laws, and
- Federal Law No. (7) of 1976 regarding Establishment of the State Audit Institution, and
- Federal Law No. (8) of 1980 regarding Organization of Labour Relations, and
- Federal Law No. (2) of 1982 regarding Determination of Pensions for Members of the National Federal Council and its amendments, and
- Federal Law No. (1) of 1984 regarding Retirement Pensions and Bonuses for Nationals Employed by Institutions, Establishments, Companies and Banks where the Government is a Share-holder, and
- According to what was submitted by the Minister of Finance and the approval of the Council of Ministers and the Federal National Council as well as the ratification of the Supreme Council of the Federation,
Promulgated the following Law:
Article (1)
The provisions of the attached law regarding Pensions & Social Security shall be put into force.
Article (2)
This law shall replace the aforementioned Federal Laws Nos.: (13) of 1974, (14) of 1974, (2) of 1983 and (1) of 1984.
The private sector employers and their national employees, who are not subject to other pension and social security laws of the State, must subscribe to the Authority according to the provisions of this Law.
Article (3)
The Authority shall set up the executive rules and conditions for the benefiting from this Law by employers as well as persons working for their own account and free-lance professionals and a decision shall be issued in this regard by the Minister after the approval of the Board of Directors.
Article (3) BIS
The Authority shall establish the executive rules of applying the provisions of "regulation of extending security protection to the nationals of the GCCC outside their countries in anyone of the other GCCC" and also establish the regulation of exchange of benefits between the pension funds operating in the country and this shall be included in a resolution from the Cabinet following the presentation of the Minister after obtaining the approval of the Board of Directors.
Article (4)
Without prejudice to the provisions of Article (20) of the attached Law, the pensions of the insured persons, whose services terminated before the enforcement of this law, as well as the pensions of those entitled on behalf of them shall be settled according to the pension actually collected by them or the pension due under the provisions of the attached Law whichever is bigger.
Article (5)
The regulations and decisions, issued in implementation of the provisions of the laws stated in Article (2) hereof shall continue to be enforced in what does not contradict with its provisions, pending issuance of the decisions and regulations implementing it.
Article (6)
The Minister of Finance and Industry shall issue the regulations and decisions necessary for implementation of the provisions of this law.
Article (7)
Each provision violating or contradicting with the provisions of this law shall be cancelled.
Article (8)
This law shall be published in the official Gazette and it shall be put into force after two months from the date of its publishing, but for the private sector, it shall be enforced after six months from the date of its publishing.
Zayed Bin Sultan Al Nahyan President of the United Arab Emirates Promulgated by Us at the Presidential Palace in Abu Dhabi Dated: 1st Dul Qa'eda, 1419 Hijri Corresponding to: 16 February, 1999.
PART ONE
DEFINITIONS
Article (1)
In the implementation of this law, the following words and phrases shall bear the meanings ascribed to them herein, unless otherwise stated:
- State: The United Arab Emirates
- Authority: The General Authority for Pensions and Social Insurance
- Board of Directors: The Board of Directors of the Authority
- Employer:
- a. In the Government Sector: The federal government bodies, the public institutions, the general establishments, the general companies and the banks in which the federal government contributes, in addition to the local government bodies which the government of the emirate desires to subjugate to this law.
- b. In the Private Sector: Every normal or juridical person employs UAE employers for a salary of whatever kind.
- The Insured: Every UAE national for whom these articles of the law are applicable.
- Subscription Period: The duration of service for which the insured person deserves a pension or remuneration according the conditions and pursuant to the law.
- Pensioner: Everybody whose service has terminated and deserves a pension according to the provisions of the law
- Pensioning off age: The age of sixty
- Pension: The amount of money which becomes regularly payable by the Authority every month to the pensioner or to the pensioner's deserving persons as per the articles of the law
- The deserving person: Every person who deserves a portion in the pension due the death of the insured person or the pensioner.
- The term of service: Every term of service the insured person spent working and during which he has been subject to the pensions system, as well as the terms he may add together as per the provisions of the law.
- Work injury: The injury caused by an accident during performance of work or caused by it or infected by work related diseases, and the death caused by stress or exhaustion of work shall be considered work injury whenever the rules and requirements of the minister's decision are met by an agreement with the minister of health, and the injury shall be considered work injury when an accident takes place to the insured person while going to or coming back from work.
- Work related disease: The disease which spreads increasingly among people of the same occupation or different occupations, as stated in table No (1) annexed to Federal Law No (8) of 1980 referred to herein. The percentage of the disability caused by work related disease shall be estimated by the concerned medical committee, and the disease shall be deemed as an occupational disease if the insured person is infected while doing his/her work or within one year from the date of leaving work.
- The Injured: Every injured person suffering a work related injury
- The patient: A person who gets sick or has an accident shall not be considered work related injury.
- Total disability: Every disability which prohibits the insured person from performing any occupation or job whether totally or permanently to earn a living, and that should confirmed by a decision from the concerned medical committee after stability of the condition, including complete loss of sight, or loss of the two arms or legs or loss of an arm and a leg and cases of mental diseases, or chronic and incurable diseases which are specified by a decision from the Minister of Health.
- Partial Disability: Every disability which may permanently affect the ability of the insured person to perform his/her job in his/her original occupation or earn a living generally, and the said disability should be caused by a work related injury by a decision from the concerned medical committee after stability of the condition, as stated in table No (2) annexed herein, which explains the degrees of disability in cases of organic loss, if the disability is not as stated in the table herein, then the percentage of disability of the injured person to earn a living shall then be estimated by the medical committee provided that the percentage of the injury is mentioned in the report of the medical committee referred to. And if the disability does have special effect on the ability of the injured person to earn a living in his/her original occupation, then the job which the injured person does should be mentioned in details explaining the mentioned in details explaining the effect of that with regard to increasing the degree of disability in those cases from the percentage referred to in table No (2) herein.
- Natural death: the death which is not caused by work related injuries
- The concerned medical Committee: The medical committee on whose report basis the decision of the Minister of Health is issued
- The Account Salary:
- a. As for the government sector: The basic salary of the injured Person added to it the monthly allowances given to him/her as follows: Living expense allowance, social allowance for children, social allowance for UAE nationals and accommodation allowance allocated for his/her grade, and the accommodation allowance shall be estimated on monthly basis by dividing it to the number of the months of year, provided that the salary of the injured person should not exceed the subscription calculation salary of the Minister.
- b. As for the prime Minister, and his deputy, the Ministers and those in their grades: The basis salary added to it housing allowance and the other monthly and annual allowances, and the annual allowances shall be estimated by dividing them into the months of year.
- c. As for the President of the Federal National Council: The salary of the subscription calculation for the Minister, and member of the federal national council shall receive membership reward.
- d. As for the Private Sector: The wage specified by the employment contract, and if the wage is less than Dhs 1000 (one thousand dirhams) monthly, this last limit shall be taken into consideration upon application of the rules of this law, and if the salary exceeds fifty thousand Dirham Dhs. 50,000 this limit shall be considered only. Following the approval of the Board of Directors, the minister may amend the minimum and maximum limit depending on the financial situation of the authority.
- The pension account salary:
- a. In the Government Sector: the average subscription account salary for the three final years of the insurance subscription period or the entire subscription period if it is less than that.
- b. As for the prime Minister, his deputy, the Ministers and those at the same level: the subscription account salary.
- c. As for the President of the Federal National Council: the subscription account salary of the minister, the membership gratuity for the members of the Federal National Council.
- d. In the Private Sector: the average of the subscription account salary for the last five years of the insurance subscription period or the entire subscription period if it is less.
PART TWO
SUBSCRIPTIONS FOR THE INSURED PERSONS
Article (2)
Contributions for the insured include the following:
- The monthly contributions paid by the insured, which are deducted at the rate of (5%) from the contribution account salary.
- The monthly contributions paid by the employer at the rate of (15%) of the contribution account salary for the insured employees thereof. As for the employer in the private sector, the government shall bear a rate (2.5%) of its share in contributions, which is paid to the GPSSA in the form of support to encourage the employee to hire citizens. The Cabinet may amend or cancel this rate and set all conditions and controls related to the government bearing this rate according to what the Cabinet deems appropriate.
- Additional amounts due because of late payment of contributions.