Savings and Pension Plans in the UAE
Planning for your financial future in the UAE involves understanding the available savings and pension options. The landscape differs for UAE nationals and expatriates.
For UAE Nationals:
Mandatory Pension and Social Security Scheme
UAE nationals working in both the public and private sectors are typicallyMandatory Pension and Social Security Scheme required to be registered with the General Pension and Social Security Authority (GPSSA).
- Contributions are made by both the employee and the employer.
- Eligibility for pension typically arises upon reaching retirement age (usually 60, with variations for early retirement based on service years) and completing a minimum service period.
- Benefits include retirement pensions, end-of-service gratuity (for specific cases), and compensation for work-related disabilities or death.
- Recent updates and laws (e.g., Federal Law No. 57 of 2023 in Abu Dhabi) have introduced changes like increased maximum pensionable salaries and standardized calculation processes.
For Expatriate Residents:
End of Service Gratuity (EOSG)
A mandatory lump-sum payment provided by employers to eligible expatriate employees upon completion of their service. Eligibility typically begins after one year of continuous service.
- Calculated based on the employee's basic salary and length of service (e.g., 21 days' salary per year for the first five years, 30 days thereafter).
- A new alternative End-of-Service Benefits System (Savings Scheme) was introduced in October 2023, allowing employers to contribute monthly to approved investment funds instead of a lump sum. This is currently voluntary.
Voluntary Pension/Savings Schemes
A growing number of voluntary pension and savings schemes are available for expatriates in the UAE:
- Golden Pension Plan: A voluntary savings program offered by National Bonds, allowing both employers and employees to contribute for long-term savings.
- Workplace Savings Plans (e.g., DEWS in DIFC): Mandatory for expatriate employees in specific zones like the Dubai International Financial Centre (DIFC), where employers make monthly contributions to a savings plan.
- Other Voluntary Schemes: Private employers can set up voluntary pension schemes for their employees through agreements with financial institutions.
- Personal Savings and Investment Plans: Expatriates can also utilize various personal savings accounts, investment funds, and insurance-linked savings plans offered by banks and financial advisors in the UAE.
Disclaimer: This page provides general information about savings and pension plans in the UAE as of **April 10, 2025**. Laws and schemes are subject to change. We are not financial advisors, and this information should not be considered professional financial advice. Always consult with qualified professionals for advice tailored to your specific situation.
