• Sat. Jun 15th, 2024

UAE’s Pension Authority Unveils New Job Transition Flexibility for Employees

In a move aimed at providing more flexibility to employees insured under the UAE’s General Pension and Social Security Authority (GPSSA), recent amendments to the ‘Shourak’ program now grant Emirati workers the option to submit ‘merge’ requests within three months of commencing a new job. This represents a significant departure from the previous rule, which mandated a one-month window for such requests.

The ‘Shourak’ program plays a crucial role in enabling insured employees to consolidate their service years, ensuring they meet the eligibility criteria for pensions. Effective from July 1, 2023, these amendments to the ‘Shourak’ program aim to address situations where applications exceeded the previous one-month time limit, leading to rejection.

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To ensure the validity of these requests, the insured individuals must adhere to specific conditions. They must submit a request to their current employer before their service period ends and sign an agreement declaration indicating their intention to forego the end-of-service gratuity. Furthermore, they must secure new employment within six months from the conclusion of their service period. The amendment now allows for the submission of a request to merge service years within three months of joining the new employer.

The ‘Shourak’ program primarily caters to insured individuals who wish to transition from one employer to another while remaining within the GPSSA’s framework. It’s important to note that employees who have spent less than one year with an entity are not eligible for an end-of-service gratuity.

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This revised policy under the ‘Shourak’ program is set to provide Emirati employees with increased job transition flexibility and bolster their pension prospects as they navigate the evolving job market. It demonstrates the UAE’s commitment to enhancing social security benefits for its workforce while also supporting economic mobility and labor market adaptability.

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