The General Pension and Social Security Authority (GPSSA) has outlined how insured individuals can purchase additional service years to extend their recognised contribution period, a move that may increase their pension value.
Eligibility depends on the pension law that covers the individual. Those under the 1999 Law may apply after completing 20 years of service. Under the 2023 Law, applicants need at least 25 years of service, or 15 years of service and an age of 60. The 2023 Law generally applies to Emiratis who joined the workforce for the first time on or after October 31, 2023, while those already covered by the 1999 Law remain under it, even after changing employers.
Under the 1999 Law, men may purchase up to five years and women up to 10. Under the 2023 Law, both may purchase up to five. Insured individuals can buy fewer years if they wish, but total recognised service cannot exceed 35 years, the point at which the pension reaches its maximum rate. Someone with 33 years of service, for example, may buy up to two more.
The cost is based on the contribution account salary on the application date, multiplied by the contribution rate and the number of months purchased. The rate is 20 percent under the 1999 Law and 26 percent under the 2023 Law.
Payment can be made in full or in instalments, with 50 percent due upfront. The balance must be settled within four years, before the individual turns 60 or their service ends, whichever comes first. Each monthly instalment must be at least 25 percent of the contribution account salary.
Applicants must be actively employed when applying. GPSSA advises checking which law applies and reviewing the “Purchase of a Nominal Service Period” service card on its website before applying.
News Source: Emirates News Agency
