UAE Pension Authority Outlines Rules for Purchasing Additional Service Years

The UAE General Pension and Social Security Authority (GPSSA) has clarified regulations governing the purchase of additional pensionable service years under the 1999 Pension and Social Security Law and the 2023 Pension and Social Security Law, Arabian Business reported. Eligible Emirati employees may purchase five to 10 additional nominal service years to raise their recognised contribution period and increase retirement benefits, though the purchase cannot extend total recognised service beyond the maximum ceiling of 35 years.

GPSSA highlighted that purchasing additional years cannot be used to bridge initial eligibility thresholds. Under the 1999 Law, insured individuals must have completed at least 20 years of service before applying. Under the 2023 Law—which applies to Emiratis entering the workforce on or after October 31, 2023—individuals must have completed at least 25 years of service, or at least 15 years of service and reached 60 years of age.

The total cost of purchasing nominal service is determined by the insured individual's contribution account salary on the application date, the applicable contribution rate, and the number of months being purchased. The contribution rate is set at 20 percent for individuals under the 1999 Law and 26 percent for individuals governed by the 2023 Law.

Applicants may settle the cost in full or through instalments, according to GPSSA. For instalment payments, 50 percent of the total cost must be paid upfront, with the remaining balance settled within four years, before the employee reaches age 60, or before employment concludes, whichever occurs first. Each monthly instalment must equal at least 25 percent of the contribution account salary, and applications are submitted via the nominal service card on the GPSSA website.