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Abu Dhabi, 1st February 2024: Pension and social security plays an integral part in creating a sustainable society and economy in the UAE, since insurance funds contribute to providing a fixed monthly income and improving financial returns for insured Emirati’s and their families, emphasized the General Pension and Social Security Authority (GPSSA) today.
Amongst the most important social security pillars is GPSSA’s ‘Constitution’ approved in Article (16) that offers support for Emiratis through a regulated social insurance scheme that rehabilitates the entire community, with special attention to children, mothers, minors and other individuals who are unable to care for themselves due to an illness, disability, old age, or compulsory unemployment.
In order to fulfill the requirements in Article 16, an insured’s contribution ‘must not be’ less than one year, in order to be granted two types of social assistance, one of which includes the insurance system – an acquired scheme for insured individuals and their eligible family members that provides a source of funding through monthly contributions deducted from the insured employee’s salary. The insured must contribute to the system in order to receive the desired retirement pension or end-of-service gratuity.
It is worth noting that an insurance scheme takes several forms, including what is known as a fixed-term (which offers specific benefits) and a mutual fund (such as the insurance system applied by the UAE and the rest of the Arab countries). Insurance however, is based on a mutual cooperation amongst members in society to provide financial and social protection for individuals in the event of a risky occurrence, and is based on the concept of solidarity and joint contribution to achieve financial protection for insured members and pensioner’s, resulting in the nation protecting the breadwinner’s family members after their decease.
The second type of support includes financial aid offered to low-income employees who have met the insurance and social security criteria’s as registered employees with the GPSSA. This type of community assistance aims to achieve social welfare and is implemented by various UAE-based ministries, such as the Ministry of Community Development.
The UAE’s pension and social security system offers long-term security by covering individuals who have undergone various types of risk factors related to health, old-age, disability or decease, as well as occupational injuries and/or diseases that result in the inability to work, which is when the GPSSA is mandated to pay a fixed monthly pension amount to the insured person, as well as to his/her family.
The GPSSA re-emphasizes the important roles assigned collectively by each party concerned (i.e. employers, employees and the Emirati community at large), in order to ensure financial and social stability of the community and its future generation.
It is essential that insured individuals continue to enhance their level of knowledge and awareness about the insurance and pension scheme the moment they become employed, while employers/entities must safeguard the rights of Emirati employees by ensuring monthly contributing are accurate and timely.