The General Authority for Pensions and Social Insurance confirmed that the insurance benefits for the insured are calculated on the basis of the contribution account salary, which consists in the government sector of (5) elements, which are the basic salary, the high cost of living, the social allowance for children, the social allowance of the citizen, the housing allowance, and a maximum of 300 thousand One dirham, while in the private sector it consists of everything stipulated in the work contract, with a maximum of 50 thousand dirhams.
This came during two workshops organized by the Federal Authority for Government Human Resources over two days in cooperation with the General Authority for Pensions and Social Insurance to sensitize the staff of the Human Resources and Legal Affairs departments of the Federal Government to Federal Law No. (7) for the year 1999 for pensions and social insurance and its amendments and attended by the Human Resources Authority His Excellency Aisha Khalifa Al Suwaidi, Executive Director of the Human Resources Policies Sector, and Hamad Buamim, Director of Policy and Legal Affairs Department, along with a number of departments and departments directors, presented by the Pensions Authority Mohamed Saqr Al Hammadi, Director of the Unit Dah dealers.
His Excellency Aisha Al Suwaidi stressed that the Federal Authority for Government Human Resources and within its awareness efforts for employees of the Federal Government was keen to organize and host this workshop, in cooperation and coordination with the General Authority for Pensions and Social Insurance, in order to enhance insurance awareness about the pension law of all employees working in the human resources departments in the regions Federal government, as knowledge of the law enables them to provide the correct information to the employees of their institutions, which makes them able to adopt the best practical practices while they are at the head of their work, and obtain the best benefits Insurance upon retirement.
For his part, Muhammad Saqr Al Hammadi explained that the payment of contributions in the law is made on the basis of the salary of the insured contribution account, and the insurance benefits of the insured are paid upon the end of his services according to this salary, and not on the total salary of the insured.
And that the total salary is all that the insured receives from his workplace, including his basic salary, allowances and allowances, while the contribution account salary is the part of this salary, on the basis of which contributions are deducted from the insured, and this salary is approved for this purpose.
Al-Hammadi indicated that the insured must know the elements on which the calculation of the pension or the bonus depends, which is the length of service and the salary of the subscription account, because access to the knowledge of the pension account salary is the key to this calculation, and this salary is extracted through the average salary of the subscription account and it is calculated in relation to For workers in the government sector for the last three years of employment, while those working in the private sector are counted for the last five years of work, or the entire extent of participation in the private sector.
He said that there are some cases where the salary of the pension account is equal to the average salary of the contribution account, if the period is less than (3) years or (5) years in cases where the service period is less than that.
He added that the insured grants the pension based on multiplying the average salary of the contribution account in the pension percentage according to the number of years of service, which takes us to the importance of knowing the percentage of the pension that the insured is entitled to based on the years of service.
He explained that 15 years of service gives the insured a pension of 60% of the average salary of the contribution account, and the percentage increases by 2% for each additional year spent by the insured after 15 years in service, and thus the insured is granted a pension of 70% after spending 20 years in service, And 80% when spending 25 years, and 90% from spending 30 years in service, and if his service period reaches 35 years, he is entitled to a pension of 100%, which is the maximum of the average salary of the contribution account, and if he spends more than that, in addition to the pension, a bonus of 3 Months of pension calculation salary for each year exceeds that.
If we set an example to calculate the value of the pension, suppose any insured person has worked for a period of (20) years of service, and his total salary is (30,000) dirhams, and the salary of his contribution account is (25,000) dirhams, and the salary of his pension account is (20,000) dirhams, then his pension will be calculated According to the quotient of (20,000 x 70%), therefore, his pension salary is (14,000) dirhams, and therefore we encourage the insured to continue working to increase this percentage or benefit from services that increase this percentage, such as purchasing a period of legal service.
He said, as for the end-of-service gratuity, it is granted to the insured in cases where he is not entitled to a pension, indicating that to receive this bonus, the insured must have spent a period of service equal to or greater than a year of service.
As for the method of calculating the bonus, it also depends on determining the salary of the bonus account, which is the same as the salary of the pension account as previously explained, for example if the average salary of the contribution account for an insured has worked for a period of (11) years and the average salary of his pension account is (20,000) The calculation of the reward for this period will be a month and a half salary for each of the first five years of service, i.e. (5 x 20,000 x 1.5) which is equal to (150,000) dirhams, and a salary of two months for each of the following five years of service i.e. (5 x 20,000 x 2) Which is equal to (200,000) dirhams, and a salary of three months for each year of the years that exceed that, i.e. (1 x 20,000 x 3) which is equal to (60,000) dirhams, and from M will be the total bonus (235,000) AED.
During the two workshops, Al Hammadi reviewed many other topics in the law, such as combining the previous service period, purchasing legal service period, conditions for combining the pension and salary, and reviewed the conditions for entitlement to the pension in detail, as well as how to distribute the pension to those who are entitled and listened to the attendance questions from various government agencies who in turn praised the The efforts of the Human Resources Authority in organizing this workshop and they expressed their hope that more of them will be implemented in the future in order to circulate the benefit to all government agencies employees.