The General Pension and Social Security Authority confirmed that the insurance benefits of the insured are calculated on the basis of the contribution account salary.
This came during two workshops that were 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 sections of the Federal Government on the pensions and social insurance law and its amendments.
The manager of the customer unit, Muhammad Saqr Al Hammadi, explained during the two workshops that the payment of contributions to the law is made on the basis of the salary of the insured person’s subscription account. The insurance benefits are paid to the insured at the end of his services according to the salary, and not to the gross salary.
He indicated that the gross 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 period 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 with For workers in the government sector for the last three years of work, 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 cases where the salary of the pension account is equal to the average of the contribution account salary, if the period is less than a certain limit.
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 is due to the insured based on the years of service.
He explained that 15 years of service gives the insured a pension at 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 by 70% after spending 20 years in service , And 80% when spending 25 years, and 90% when spending 30 years in service. If his service period reaches 35 years, he shall be 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, he will receive a bonus of three months from the pension account salary for each year that exceeds that.
As for the end-of-service gratuity, he said that it is granted to the insured in cases where he is not entitled to a pension, noting 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, he said that it 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 person has worked for 11 years, and the average salary for his pension account is 20 thousand, then the reward calculation for this period will be one and a half months salary for each of the first five years of service, i.e. (5 × 20,000 x 1.5 (which equals 150,000 dirhams, and two months 'salary for each of the following five years of service, i.e. 5 x 20,000 x 2) which equals 200,000 dirhams, and three months' salary for each year that exceeds that (i.e. 1 x 20,000 x 3) which equals 60,000 dirhams, and then the total bonus will be 235,000 dirhams.
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 the beneficiaries, and listened to questions of attendance from various government agencies, Those who praised the efforts of the Human Resources Authority in organizing this workshop, and expressed their hopes that more of them will be implemented in the future, in order to circulate the benefit to all government agency employees.
Subscription account salary
The salary of the participation account in the government sector consists of five elements.
she:
basic salary.
High cost of living.
Children's social allowance.
The social allowance of the citizen.
Housing allowance.
With a maximum of 300 thousand dirhams, while in the private sector it consists of each
What is stipulated in the work contract, up to a maximum of 50 thousand dirhams.
The gross salary is all that the insured receives from his work place.