By combining employment years at no cost, the new decree law Emiratis No. 57 of 2023, announced by the General Pension and Social Security Authority (GPSSA), helps to improve an insured Emirati’s chances of receiving a retirement pension and end-of-service gratuity once ready to retire.
The end-of-service gratuity will be paid upon the conclusion of the entire employment time, and prior and subsequent employment years will be legally combined if an insured Emirati decides to incorporate employment years upon joining a new entity.
If an insured individual chooses to pay an end-of-service gratuity upon joining a new entity and then wants to combine service years, they can still do so as long as they have paid their share of contributions for the combined periods. In this scenario, the cost of the merge is determined by multiplying the desired service periods in months by 26% and then calculating the cost of the merge on the contribution account on the date the request is submitted.
The cost of combining service years must be paid in full before the employment term ends and within 30 days of the merge request’s approval; if not, the request will be canceled, and the insured party may choose to pay the cost in installments under specific guidelines.
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