How is an Emirati employee's pension calculated?

Hello,

According to UAE law, the pension for an Emirati employee is calculated based on a percentage of their monthly salary, as per the regulations of the General Pension and Social Security Authority.

For employees in the private sector, 5% of the salary is contributed by the employee, and 5% is contributed by the employer.

If the employee’s total salary is 4200 AED, 5% of this amount (210 AED) would be the employee's contribution to the pension, and the employer would also contribute 5%.

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She will get a gratuity as per the basic salary at the end of the contract.

Dear Questioner,

I hope you are doing well!

Calculation Example Based on a Monthly Salary of 4200 AED:

- Employee’s Contribution: 5% of 4200 AED = 210 AED per month.

- Employer’s Contribution: 12.5% of 4200 AED = 525 AED per month.

Thus, the total monthly pension contribution (both employee and employer) would be 735 AED (210 AED + 525 AED).

Please do not hesitate to reach out to us directly for further assistance.

Greetings,

Mohammed Salah

Legal Consultant

The AED 4,200 salary is the gross salary, but it is not necessarily the amount subject to deduction.

Deductions are calculated based on the basic salary and the allowances included (according to the employment contract and pension laws).

Make sure to find out if the AED 4,200 includes non-pensionable allowances.

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

The pension for an Emirati employee with a total salary of AED 4,200 is calculated based on the basic salary of AED 2,520.

The employee contributes 11% (AED 277.20) and the employer contributes 15% (AED 378.00), totaling AED 655.20 monthly.

The pension amount at retirement will depend on years of service, calculated at 2.67% per year of the pensionable salary.

Thanks & Regards,

ABDUL WAHIED