The pension calculation salary is calculated based on the average contribution account salary
“Annuities”: the contributions of the insured and the end of his service are calculated according to the salary of the contribution calculation
The General Pensions and Social Security Authority said that the contributions that are paid monthly to the Authority on behalf of the insured (contributor) by the employers are calculated according to the salary of the subscription calculation, and the insurance rights that include the retirement salary or end-of-service gratuity are paid on the basis of the “average contribution calculation salary.”
The Director of the Pension Operations Department, Muhammad Saqr Al Hammadi, said that the insured’s knowledge of the salary of the subscription account shows him the value of the contributions that are paid on his behalf monthly to the Authority, as well as the value of the retirement pension that will be paid to him at the end of his service, or the value of the end-of-service gratuity in the event that the conditions for entitlement to the pension are not met. (retirement salary).
He added that the first step towards the method of calculating the retirement salary or the end-of-service benefit is for the insured to know the difference between the total salary, the contribution calculation salary, and the average contribution calculation salary, leading to knowing the pension calculation salary (retirement salary) that he will receive or the end-of-service gratuity upon the end of his service. .
Al Hammadi indicated that the total salary is all that the insured receives at the end of each month from his employer, while the salary for the subscription account in the government sector consists of elements that include the basic salary in addition to the monthly allowances and allowances set by the Pensions Law at the cost of living allowance, the social allowance for children and the social allowance for the citizen The housing allowance, with a maximum of 300,000 dirhams, while in the private sector, the salary of the subscription calculation includes everything stipulated in the work contract, with a maximum of 50,000 dirhams. His insurance entitlements at the end of his service.
He explained that the average salary for the subscription calculation is the sum of the salary of the insured’s contribution calculation in the government sector for the last three years of work divided by 36 months, and in the private sector, the sum of the last five years of work divided by 60 months, or on the subscription period in both cases if the service period is less about it.
He explained that the pension calculation salary (retirement salary) is calculated based on the average contribution calculation salary multiplied by the accrual ratio according to the years of service, as 15 years of service for the insured gives the pension 60% of the average contribution calculation salary as a retirement pension, while 20 years of service are granted to the pension by 70%, and this percentage increases by 2% for each additional year spent by the insured after 20 years of service in order to reach the maximum pension, i.e. 100%, after spending 35 years of service.
• The total salary is all that the insured receives at the end of each month from his employer.
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