UAE Pension Payment Period Extended to Decade

Workers Have a Decade for Pension Merger Payments in UAE

Combining Service Periods Opens New Mobility for Flexible Retirement Planning

In the United Arab Emirates, a significant change has been introduced in one of the key components of the social security system, which could affect thousands of employees—especially those with long career paths or who have worked for several employers over the years. The General Pension and Social Security Authority (GPSSA) extends the period from September 2025 to ten years, allowing employees to pay the costs of merging service periods.

What is Merging Service Periods?

Merging service periods means that an employee can combine their multiple periods of employment—held at different employers or during different times—into a unified pension-eligibility tenure. This is especially important for those who have changed jobs, worked in discontinuous stints, or were engaged in other types of employment before joining the official federal system.

Through such a merger, achieving the minimum service period required for pension eligibility becomes easier, and the final pension amount may be higher as calculations are based on longer service periods.

What Changes From September 2025?

Under the former regulation, workers had only four years to fully pay the costs of service periods merging. This posed challenges, especially if a large amount was required, or if their current income didn't allow quick repayment.

The new regulation allows workers to pay the consolidated period costs over ten years in installments, significantly reducing financial burdens and facilitating long-term financial planning.

The new regulation will roll out in two phases:

Phase One (September 2025): Applies to those with an active service period merger application.

Phase Two (November 2025): Opens to new applications, allowing those who haven't yet initiated a merger to apply.

What Do Affected Individuals Need to Do?

The GPSSA advises those wishing to submit applications in the second phase to update and verify their details on the digital Maashi platform as soon as possible. This digital system ensures data accuracy and speeds up the process. Accurately documenting service periods, especially those already completed or undertaken with other employers, is crucial for a smooth process.

The GPSSA emphasizes that the correctness of data—including the length, type of service, and previous employers—is essential for the merger's approval. The digital system also allows tracking of applications, managing installment payments, and viewing the current status.

Who Especially Benefits from the Change?

The new regulation primarily aids those currently paying the costs of service period merging and have paid beyond the previously mandatory minimum (a quarter of the contribution payment). They now have the opportunity to spread out the payments over a longer period, enabling them to meet their financial obligations with smaller monthly amounts.

Importantly, the minimum mandatory installment rate remains a quarter of the contribution payment, which all affected individuals must meet—but now over ten years.

What Periods Can Be Merged?

The regulation enables merging service periods in the following cases:

Employment tenure with UAE federal pension-eligible employers.

Service periods from before obtaining citizenship.

Other periods as specifically approved by the GPSSA Board of Directors.

This means not only current and former official employment periods are counted but also in exceptional cases, other types of employment periods if recognized by the authority.

Why Utilize the Merger?

Combining service periods is voluntary but beneficial in many aspects:

Continuous Service Period: Results in uninterrupted pension-eligibility duration, which can be advantageous for full pension access.

Higher Pension Amount: Longer service periods can result in a higher monthly pension.

Flexibility: Thanks to the longer payment period, a large sum doesn't need to be raised at once.

Retirement Planning: Consolidated service periods facilitate long-term financial security.

Summary

The extension to a ten-year payment period represents significant progress in UAE's social security system. The GPSSA aims to increase administrative flexibility and enable a greater number of workers to participate in the state pension system, planning for their futures more consciously. The process, supported by digital tools, allows for fast, transparent, and efficient handling for those who wish to take advantage of this opportunity.

The article is based on a statement from the General Pension and Social Security Authority (GPSSA).