The period of service of the insured determines the type of entitlement

“Annuities”: It is not permissible to disburse the end of service gratuity instead of the “deferred pension.”

An insured person who has completed 20 years of service may not choose between the payment of a retirement pension or an end of service gratuity.

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The General Pension and Social Security Authority confirmed that the insured person who has completed a 20-year service period may not choose between the payment of the retirement pension or the end-of-service gratuity, because the period of service determines the type of entitlement, noting at the same time that it is also not permissible to request the payment of the benefit. This stipend is instead of the “deferred pension” in the event that the pension is linked to reaching the age of 50.

The authority clarified that the end-of-service gratuity is calculated according to the pension calculation salary, explaining that the insured’s knowledge of the contribution account salary clarifies to 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 disbursed to him at the end of his service, or the value of the end-of-service gratuity in the case of Unavailability of conditions for entitlement to a pension (retirement pension).

She pointed out that the insured's remuneration is calculated at the rate of one and a half months' salary (average) for each year of service (from one to five years), while it is calculated at the rate of two months' salary for each year (from five to 10 years), and finally, the salary of three Months for each year (in case of more than 10 years of service).

The Authority confirmed that the insured who left his work and whose service period is less than one year, is not entitled to an end of service gratuity for this period. From one year to 19 years, 11 months and one day, he is entitled to a pension for this period, pointing out that there are unusual cases such as death, total disability, work injuries, and occupational diseases, which are dealt with according to the terms and conditions stipulated in the law.

The authority defined the total salary as “everything that the insured receives at the end of each month from his employer,” while the salary for the subscription calculation in the government sector consists of several elements, including “the basic salary plus the monthly allowances and allowances set by the Pensions Law with the cost of living allowance and the social allowance for children.” The social allowance for the citizen and the housing allowance, up to a maximum of 300,000 dirhams,” while in the private sector, the salary of the subscription account includes everything stipulated in the work contract, with a maximum of 50,000 dirhams. And on his average, his insurance entitlements are calculated at the end of his service.

She stated that the average salary for the contribution 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 total of the last five years of work divided by 60 months, or on the contribution period in both cases if the service period is less about it.

End of service gratuity is calculated according to the pension calculation salary.

An end of service gratuity is paid to those whose terms of service ranged from one year to 19 years and 11 months.

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