Employees in the UAE now have a decade to settle payments for the consolidation of their service periods in relation to pensions.

The General Pension and Social Security Authority (GPSSA) has announced significant changes to its pension policy, aiming to provide better flexibility in retirement planning for UAE citizens.

One of the key updates is the extension of the timeframe for insured individuals to pay for merging service periods from four years to 10. This decision, endorsed by the GPSSA Board of Directors, is aimed at encouraging individuals to combine previous employment periods, thereby potentially increasing their final pension amount.

The updated policy will apply to all insured individuals covered under GPSSA's pension laws, effective September 2025. The digital Ma'ashi platform, a tool provided by GPSSA, will serve as a crucial resource for insured individuals to update and verify their information related to merging service periods.

Other periods approved by GPSSA's Board of Directors are also eligible for merging. This includes service completed before acquiring UAE citizenship and employment with any employer covered by federal pension laws. Merging service periods ensures a continuous employment record, potentially increasing the likelihood of meeting minimum eligibility for pension benefits.

In a move to support UAE citizens in the private sector, over 71,000 are now registered for Nafis, pension benefits. The mandatory minimum payment remains at one-quarter of the contribution salary.

In other news, GPSSA has decided not to impose fines on employers who missed pension due dates in October and November.

Additionally, insured individuals paying installments above the legal minimum can now spread payments over a longer period. This change is expected to provide financial relief to those who wish to contribute more towards their retirement.

The implementation of the updated policy will take place in two phases. The first will cover insured individuals with active merging service requests, while the second, starting in November 2025, will open the process to new applications. GPSSA advises those planning to submit merging service period requests during the second phase to update and verify their information through the digital Ma'ashi platform.

Ensuring accurate data, including confirmation of eligible service periods, will help avoid delays in processing. The updated policy will be applicable from September 2025.

Another notable change is the increase in the minimum pension for retirees in Sharjah to Dh17,500. This move is expected to provide a significant boost to the retirement income of many UAE citizens.

The updated policy is part of GPSSA's ongoing efforts to improve the pension system and provide better support to UAE citizens in their retirement years.