The Abu Dhabi Retirement Fund confirmed that Law No. (15) of 2020 amending some provisions of Law No. (2) of 2000 in the matter of civil retirement pensions and benefits for the Emirate of Abu Dhabi, which was issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the State - may God preserve him - as a ruler For the Emirate of Abu Dhabi, it contributes to strengthening the retirement system in the Emirate of Abu Dhabi, and a large segment of the insured citizens, especially those working in the private sector, benefit from it, and it is estimated that there are 8,771 citizens working for 1,176 employers.
The Fund stated that the amendments mentioned in the law work to reduce the differences in pension benefits between citizens working in the private sector and their counterparts in the government sector, through amendments that raise the maximum salary subject to deduction (on the basis of which the pension is calculated after retirement or the end of service gratuity) for working citizens In the private sector from 60 thousand to 200 thousand dirhams, as well as raising the minimum salary subject to withholding from three thousand to six thousand dirhams, a measure that has not changed since 2015, which has caused a number of challenges.
The Fund stated that the most prominent challenges that the law worked to address were the reluctance of citizens with talents to work in the private sector, and the minimum salary subject to deduction, which is estimated at 3 thousand dirhams, to match the minimum wage, which is 6 thousand dirhams for a graduate according to laws Human resources, in addition to a large gap between the actual salary that the insured receives in the private sector, especially the category whose salaries exceed 60 thousand dirhams, and between the salary subject to the deduction approved by the fund, pointing out that these challenges necessitated the introduction of the amendments mentioned in the law, to motivate citizens To work in the private sector and continue in it to reach the highest positions, as well as aligning the minimum salary subject to deduction, with the minimum wages mentioned in the Human Resources Law.
The fund pointed out that the amendments mentioned in the law increase the retirement benefits for citizens working in the private sector, which they will receive after the end of their services, to ensure that citizens maintain their living standards after retirement, on the one hand, and also maintains the financial sustainability of the fund on the other hand.
The Fund noted that the application of the new amendments - for the salary subject to withholding - will be subject to the controls set, as the retirement pension or the end of service benefit for the insured in the private sector will be calculated based on the average of the last six years of the salary subject to withholding, and a maximum limit for the annual increase will be set The salary subject to withholding in the private sector, at an annual rate of 15%, with insured persons in the private sector not being allowed to re-register at the same employer, except after at least 6 months have passed.
The Fund stated that, with the issuance of the law, the employers will be allowed to increase the salary subject to deduction for their workers, with a maximum of 15%, with the annual increase not exceeding 15% of the value of the salary subject to deduction, which also applies to citizens whose services are terminated after the issuance of the law .
The law allowed private sector employers to allow an increase in the salary subject to deduction in excess of the prescribed rate, and not to exceed the maximum salary subject to deduction, provided that the increase includes all of its employees, and that it bear the financial obligations resulting from this increase.
The new amendments also included a change in return for the addition of previous service periods, as the insured workers working in the governmental and private sectors have become reimbursed (26%) of the salary subject to deduction, on the basis of which the contributions are paid at the date of submitting the application for the addition, and it can be paid in one payment within a month of The date of approval of the application for annexation or submitting an application in installments.
The law introduced two new articles, regarding the calculation of end-of-service benefits for workers in the private sector, the first, which states, "The reward is calculated for the actual service period that exceeds 25 years, at the rate of three months' salary for each year, provided that the insured and the employer continue to pay contributions." .
With the other article stipulating, "The reward for the insured worker in the private sector shall be calculated at the rate of one and a half months salary for each of the first five years of his service, provided that his service period is not less than one year, then by two months salary for each of the next five years of his service, then With a salary of three months, his service exceeds 10 years. "
The law also introduced amendments to the controls of the mechanisms for paying monthly contributions and extending secondments for insured persons, leave "without salary, satisfactory and academic", and internal secondments, in addition to periods of interruption from work.
According to the law, the daughter's share due from her deceased father's pension will be suspended in two cases, the first upon her marriage, the second when she joins work, and the daughter, sister, or daughter of the son upon her marriage is granted the first time a grant equivalent to her share in the pension for six months.
The law also introduced an article regulating the conditions for registering insured persons in the Abu Dhabi Retirement Fund, which stipulated that the insured must not be less than 18 years old, and not exceed the age of referral for retirement (fifty-five Gregorian years for females and sixty Gregorian years for males) to be registered in the Fund, and that it be A healthy fit for work upon appointment, according to a medical report from the medical authority approved by the employer, and this report shall be submitted by the employer upon his participation in the fund.
The fund emphasized that the Abu Dhabi government will bear all costs and financial burdens resulting from the issuance of the law and the amendments that will be made to salaries subject to deduction, which are estimated at approximately 264 million dirhams, without the insured having any financial obligations, which saves the citizens their living standards after retirement And also maintains the financial sustainability of the fund.
He explained that this law is effective from the date of its issuance on May 20, 2020, and the new amendments will be applied to new participants in the fund and everyone who worked for a government agency and joined work in the private sector, and everyone who ended his service with the private sector before the issuance of this law.