GPSSA issues circular on pensions, gratuity in UAE

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GPSSA retains the right to collect its debts ahead of any other owed amounts. (WAM)
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  • The circular included limiting the procedure of deduction from the pension or end-of-service gratuity for the benefit of GPSSA's debt.
  • In cases of unlawful disbursement, GPSSA has the right to deduct from other beneficiaries' shares, proportional to their entitlements.

ABU DHABI, UAE – The Emirates General Pension and Social Security Authority (GPSSA) has issued a circular to government and private sector employers, detailing the regulations for pension deductions and end-of-service gratuity in line with Federal Decree Law No. 57 of 2023.

The circular included limiting the procedure of deduction from the pension or end-of-service gratuity for the benefit of GPSSA’s debt since the Authority is prohibited from making any deductions for the benefit of any other debts, whether they are for the benefit of the employer or alimony debts.

These rules apply to all cases of debts before or after the implementation of this decree, effective as of 2/9/2024.

Accordingly, the GPSSA will transfer the entire pension or gratuity without any deduction for any debt except GPSSA’s debt.

As for the alimony debt, individuals seeking this debt can take measures to seize the pension or gratuity through the bank by which it is transferred and not through the Authority.

The Authority’s debts will be recovered from end-of-service gratuities without limitation.

In cases of unlawful disbursement, GPSSA has the right to deduct from other beneficiaries’ shares, proportional to their entitlements, without prejudice to their rights.

Entitled amounts will be spent according to each of their shares.

According to relevant legislation, GPSSA retains the right to collect its debts ahead of any other owed amounts.

These regulations apply to all citizens covered by GPSSA’s pension law and employers subject to its provisions.

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