His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the State, in his capacity as Ruler of the Emirate of Abu Dhabi, issued Law No. (15) of 2020 amending some provisions of Law No. (2) of 2000 regarding civil pensions and gratuities for Abu Dhabi.
The law included a number of amendments that contribute to strengthening the pension system in Abu Dhabi, the foremost of which is raising the maximum salary subject to deduction (on the basis of which the pension is calculated after retirement) for citizens working in the private sector from 60 thousand to 200 thousand dirhams, as well as raising the minimum Deductible salary from three thousand to six thousand dirhams.
According to the amendments mentioned in the law, the government bears an estimated financial cost of approximately 264 million dirhams, as a result of the amendments that will be made to salaries subject to deduction for workers in the private sector, in addition to increasing the value of the annual contributions paid by the government for citizens working in this sector, without any insured person having any Financial obligations, which preserves citizens' living standards after retirement, as well as maintains the financial sustainability of the fund, which contributes to increasing pension benefits and raising the value of the pension after retirement for citizens working in the private sector,
This law is effective from the date of its promulgation on May 20, 2020.
Jassim Al Zaabi, Chairman of the Abu Dhabi Retirement Fund, said: "The new law is an affirmation of the rational leadership approach in its keenness to provide citizens with a decent living, respond to their needs and preserve their rights and interests."
And he added, "The new amendment reduces the differences between citizens working in the private sector and their counterparts in the government sector, with regard to pension benefits, as it will contribute significantly to raising the value of the pension after retirement for citizens working in the private sector, so as to encourage them to move towards employment towards this sector, to be attractive. Citizens cadres and distinguished expertise, to support the economic growth of the emirate "
Al-Zaabi stated that the application of the new amendment will not incur the insured in the private sector at any additional cost, as the government will bear the full cost, which amounts to 264 million dirhams, which preserves citizens' living standards after retirement, and also maintains the financial sustainability of the fund.
He stressed that the law is in the interest of citizens working in the private sector and increases the retirement benefits that they will receive after the end of their service period, as it also contributes to solving many of the challenges that the fund was facing during the last period, especially as the value of the maximum salary subject to deduction in the private sector There has been no change since 2015, which has created a huge gap between the actual salary that the insured receives in the private sector, especially the category whose salaries exceeded 60 thousand dirhams, and the salary subject to deduction approved by the fund.
For his part, Director General of the Abu Dhabi Retirement Fund, Khalaf Abdullah Rahmah Al Hammadi, stated that the issuance of His Highness Sheikh Khalifa bin Zayed Al Nahyan - may God protect him - to Law No. (15) for the year 2020, comes as confirmation of the principle of justice and equality pursued by the wise leadership, and its concern Securing the future of citizens working in the various sectors in the emirate.
He said: "One of the most important challenges that the amendment addresses also is the reluctance of citizens with experience and competence to work in private sector institutions, and the pursuit of employment in government agencies to obtain better insurance benefits, but in light of reducing differences the private sector will benefit from the ability to attract distinguished cadres to work He has, and the best government job quote ends. "
With regard to the number of beneficiaries of the new amendment, Al Hammadi said: "A large segment of citizens will benefit from the new amendment, as the number of insured persons in the private sector reached 8,771 citizens in 1,176 employers."
Al-Hammadi called on the labor authorities to commit to applying the amendments and controls related to them, and to comply with the other requirements of the fund, including registering the employees working for them in the retirement system and paying their contributions on time, which contributes to preserving the insurance rights of citizens.