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Service Description

calculation of end of service benefits and pension salary

Last Update: 9/4/2019 9:00:45 AM

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calculation of end of service benefits and pension salaryto ensure eligibility and to check the value.  


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Service Users Count 95731

Estimated Time

5 دقائق

Required Documents

 This service does not require submitting any documents. 


Prerequisites

The employee must be a contributor (insured) at GPSSA.

Service Procedure

- Visit GPSSA's website.  
- Fill in the required data. 

How To Apply

Service Users:

EmployerInsured

Departments:

Contributions

Service Recipient:

Government to IndividualsGovernment to GovernmentGovernment to Private

Service Fees:

Free

Service Channels

E-services Portal

 Dubai - Al Tawar branch,  Dubai - Elmanara Branch,  Dubai - Umm Al Ramool,  Sharjah Branch, Abu Dhabi - Headquarter, Fujeirah Branch, Ras Al Khaimah Branch

  1. FAQ
    1. What is meant by Pension Calculation Salary?
      1. -  Governmental sector: average of Contribution Calculation Salary for the last 3 years of service (i.e. total Contribution Calculation Salaries through 3 years divided by 36).

        -  Private sector: average of Contribution Calculation Salary for the last 5 years of service (i.e. total Contribution Calculation Salaries through 5 years divided by 60).​

    2. What is meant by work injury in Pensions Law?
      1. work injuries are:

        • The injury caused by an accident, which happened during the working hours or because of work.
        • The injury happens to the insured while going to or returning from his work.
        • The profession related illness resulting from the nature of the materials used in work.

        Death resulting from work stress and exhaustion​.

    3. What are the benefits stated by Pensions Law to the insured who has not met pension entitlement requirements?
      1. End of Service Remuneration shall be calculated as follows:

        Service periodGratuity due against each year of service
        1 – 5 yearsOne month and half salary
        Next 5 yearsTwo-month salary
        Subsequent 5 yearsThree-month salary​
    4. Can the retired person return to work in an entity associate to the Authority and be paid, upon service end, based upon the previous and subsequent service periods?
      1. Yes, he can add his previous service period, to which he received pension, to his new service period according to the following conditions:

        • Submit addition application within one year from the date in which he returned to work.
        • His age shall not be more than 55 years upon returning to work.
        • The period, which may be added, includes actual service period and nominal service period purchased.
        • Service period shall be added in full other than in part.
        • Pension payment shall be discontinued as from the date of returning to work excluding these who may combine their pensions and salaries. (See Question 58).
        • Payment of purchase cost at the rate of 20% x the difference between Pension Calculation Salary and Contribution Calculation Salary on the date of purchase application x the service period added in months.
        • Addition cost shall be paid in one lot or on installments not less than quarter of Contribution Calculation Salary provided that the installment period shall not extend beyond the date of the insured service end or the date in which the insured shall become 60 years old, whichever comes earlier.
        • Previous service period, to which the insured received his pension shall be added without addition cost if Contribution Calculation Salary, in the date of submitting addition application, is equal or less than the rate of the previous pension.​​
    5. How monthly pension is calculated?
      1. -                   60% x Pension Calculation Salary = pension for 15 years of service.

        -                   2% of Pension Calculation Salary for each year after 15 years of service.

        Example:  20 years of service, average of Pension Calculation Salary is (AED 25.000)

                      Pension rate:  60% for the 15 years of service

                                             + 10% for the 5 additional years

                                             70% x AED 25.000 = AED 17.500​

    6. When shall the insured who suffers work injury be entitled to pension?
      1. Yes. The concerned insured person shall be entitled to pension if work injury resulted in death or total disability regardless of the service period.​
    7. Which salary whereby gratuity shall be calculated?
      1. It is the same as Pension Calculation Salary (Check the answer of the first question under the category "Pension Calculation")​.

        Example: An insured worked for 11 years in a governmental authority and his average Pension Calculation Salary was AED 20.000 during the last three years of his service.

        1.5 x 20.000 x 5 = AED 150.000

        2 x 20.000 x 5 = AED 200.000

        3 x 20.000 x 1 = AED 60.000

        Total due gratuity = AED 410.000​​​​

    8. How rate of pension of death or total disability (resulted from work injury) is calculated?
      1. The insured shall be entitled to retirement pension by the assumption that the period of his service extended to 35 years (i.e. maximum limit 100% of average of Pension Calculation Salary regardless of the service period).

        • Rate of disability shall be determined under a decision by the Medical Committee of the Authority. ​
    9. In case of service termination of the insured person entitled to gratuity during the month, shall the other part of month be calculated?
      1. The insured shall be entitled to the full month. Knowing that the law requires a service duration of not less than one year to be eligible for end of service benefits, and as the part of the month is deemed a complete one, therefore, those who complete 11 months and one day in service are eligible for one-year benefits.​
    10. When does pension become payable?
      1. Pension becomes payable on the next day of service termination.​
    11. What are the provisions of law applicable if the insured service period exceeded 35 years?
      1. The insured shall be given a gratuity against the extra period at the rate of 3-month salary per year using the category of Pension Calculation Salary.

        Example: An insured whose service period lasted for 38 years and his average of Contribution Calculation Salary was AED 25.000.

        Gratuity = 3 x AED 25.000 x 3 = AED 275.000 plus retirement pension.​​

    12. If the Pensioner's service is terminated while he has not completed the last month of his service, shall this part of month be calculated in pension?
      1. The insured shall be entitled to the full month even if he works for a sole day in that month.​
    13. Are there any other benefits entitled to the retired employee in relation to pension and gratuity if the insured service period exceeded 35 years?
      1. In this case, the insured shall be entitled to death grant for (AED 60.000) if his service was terminated due to natural death, to be allocated to his legal heirs.​
    14. When shall work injury related pension start?
      1. Work injury related pension shall start as from the next day of service termination due to death or total disability.​

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