Urgent: The UAE announces the dates for disbursing pensions for the year 2024

Abdallah Shahin - | Business

Pension payments for 2024 will be disbursed on the dates notified by the General Authority for Pensions and Social Security.

Unless January, April, or July falls on a different date (the 26th), she indicated that pensions will be paid on the 27th of every month. October, on the other hand, will have its payments made on the 25th.

The early announcement of pension disbursement dates is done so that the groups that will be receiving them can start saving for the new year 2024 or for other things that will help them live their lives more deliberately and purposefully, according to the Authority. Any changes to these dates will be announced through the Authority's media or social media.

Steps for calculating the retirement pension and end-of-service benefits:

According to a previous announcement by the General Authority for Pensions and Social Security, there are three primary steps involved in determining the retirement pension and end-of-service benefits for insured individuals registered with them from the private and public sectors, as per the Federal Pensions and Social Security Law.

In order to determine the employee's contribution, the first step in the calculation process is to determine their salary. For government employees, this salary includes the basic salary plus five allowances and bonuses specified by the Pensions Law: the cost of living allowance, the children's allowance, the citizen's social allowance, and the housing allowance. In the private sector, this salary includes all benefits stated in the employment contract and does not exceed 50,000 dirhams. The manner by which the components of the employee's total compensation are calculated, as well as the items included in that wage for calculating his contribution, are matters of particular detail in the case of certain local governments.

She mentioned that once the contribution account salary is known, the average contribution account salary is computed. For government employees, this is done over the last three years of employment (or the entire subscription period if the service period is shorter), while for private sector employees, it is computed over the last five years of employment. If it's shorter than that, the whole subscription term.

Multiplying the annualized subscription account wage for the most recent three or five years of employment by twelve months yields the average, whichever is applicable to the industry in question. After then, the average salary subscription is calculated by dividing the total by the number of months worked, in this case 36 months for public sector employees and 60 months for private sector employees.

The last and third stage is to figure out how much of a pension or bonus you'll get. Pension is determined by averaging the insured's salary over a certain number of years of service. After 20 years of service, the insured receives 70% of their average salary as a pension. After 20 years, the insured receives a 2% increase for every year beyond 20. In some cases, the insured receives a 60% increase for 15 years of service. After 35 years of service, the insured receives a 100% increase for their pension. Any year beyond 35 years of service is also granted a 100% increase. A bonus equal to three salary increments is paid out of the pension fund to the insured.

In light of the foregoing, let us suppose that after 20 years of service, an employee's average subscription account income is 22,166 dirhams. After he retires, his pension will be 70% of his average subscription account salary (as determined by his years of service), which is calculated as (22,166 x 70%), or 2,266,000. The projected amount of his pension is 15,516.2 dirhams.

Workers in both the public and private sectors are entitled to an end-of-service bonus based on their average salary. This average salary is the same as the one used to calculate the pension, so an insured person can expect to receive a bonus equal to half a month's salary for every year of service during the first five years. To determine the bonus, it is calculated as follows: two months for every year of service after the first five, and three months for every year beyond that. It should be mentioned that the bonus eligibility period begins at one year of employment and continues until the employee reaches 19 years and 11 months. However, if the employee puts in an extra day, he will have to complete the pension eligibility period because the law forces the part of the month to be a full month.

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