Business
UAE — Business: Social Security (Gratuity & GPSSA)
UAE nationals are covered by the GPSSA pension/social-security scheme, with mandatory employer and employee contributions; expatriate employees instead receive an end-of-service gratuity funded entirely by the employer (no ongoing social-security contribution scheme applies to them). Gratuity is calculated on a tiered basis: 21 days' average contribution-account salary per year for the first 5 years, 30 days' per year beyond that (commonly summarized as 21-30 days/year of service), with a minimum 1 year of service required to qualify. For GPSSA-covered UAE nationals, maximum pension entitlement (100% of pension calculation salary) is reached after 35 years of service; extended service unlocks additional benefits including purchasing nominal service years and a bonus of 3 months' pension salary per year beyond 35.
Key facts
- UAE nationals: mandatory GPSSA pension contributions (employer + employee); expatriates: employer-funded end-of-service gratuity instead.
- Gratuity: tiered accrual, roughly 21-30 days' salary per year of service; minimum 1 year of service required to qualify.
- GPSSA maximum pension entitlement (100%) is reached after 35 years of service for UAE nationals.
- Service beyond 35 years for GPSSA-covered nationals earns a bonus of 3 months' pension salary per additional year.
Timelines
- Minimum service for gratuity eligibility: 1 year
- Maximum GPSSA pension entitlement (UAE nationals): 35 years of service
Common mistakes
- Assuming expatriate employees are covered by GPSSA — expatriates receive an employer-funded gratuity instead, not a pension contribution scheme.
- Miscalculating gratuity by using a flat rate instead of the tiered 21-day/30-day accrual structure.