United Arab Emirates
Worked in United Arab Emirates as an expat? You almost certainly won't get a local state pension — that's reserved for citizens — but you're likely owed an end-of-service gratuity: a lump sum based on your years of service and final salary, paid when you leave. Here's how United Arab Emirates's system works and what to check before you go.
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Overview
The UAE operates a multi-pillar pension system that is fundamentally split between UAE nationals (Emiratis) and expatriate workers.
For Emiratis, a mandatory defined benefit (DB) social insurance system is administered by three separate authorities depending on emirate: the General Pension and Social Security Authority (GPSSA) covers federal, government, and private sector employees in Dubai, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain; the Abu Dhabi Pension Fund (ADPF) covers all employees in Abu Dhabi; and the Sharjah Social Security Fund covers Sharjah government employees. GCC nationals working in the UAE are also covered under the GCC Insurance Protection Extension Program, receiving pension benefits according to their home country's laws.
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The system was significantly reformed by Federal Decree Law No. 57 of 2023, which applies to new Emirati entrants to the workforce from October 31, 2023 onward, raising contribution rates to 26% of pensionable salary (11% employee, 15% employer), increasing salary caps, and setting a new minimum retirement age of 55 with 30 years of service. Existing members registered before that date continue under Federal Law No. 7 of 1999 (20% total contributions: 5% employee, 12.5% employer, 2.5% government). Expatriate workers (non-GCC nationals) are not covered by any national pension scheme; instead, they receive a mandatory end-of-service gratuity (EOSG) lump sum upon termination, calculated at 21 days' basic salary per year for the first 5 years and 30 days per year thereafter, capped at 2 years' total basic salary.
Since 2023, a voluntary alternative savings scheme (MoHRE Savings Scheme) and the DIFC Employee Workplace Savings (DEWS) plan in the DIFC free zone offer funded DC alternatives to the traditional gratuity for expatriates.
~80% (2.67% per year of service up to 30 years, then +4% per year to a maximum of 100%; minimum pension AED 10,000/month guaranteed by GPSSA)
Three-pillar system: Pillar 1 – Mandatory state DB pension for UAE/GCC nationals (GPSSA/ADPF/Sharjah SSF); Pillar 2 – Occupational DC savings (DEWS for DIFC employees; MoHRE voluntary savings scheme for private sector); Pillar 3 – Voluntary personal savings and investment
Bismarckian (earnings-related DB for nationals); DC/Gratuity for expatriates
Employee
11 (new GPSSA/ADPF members from Oct/Dec 2023); 5 (pre-existing GPSSA/ADPF members under 1999 law)
Employer
15 (new members); 12.5 (pre-existing members); government contributes additional 2.5% for private sector employees earning below AED 20,000/month
Notes
Under Federal Decree Law No. 57 of 2023 (new members from Oct 31, 2023): total 26% (11% employee + 15% employer); private sector salary cap AED 70,000/month; public sector cap AED 100,000/month. Under Federal Law No. 7 of 1999 (pre-existing members): total 20% (5% employee + 12.5% employer + 2.5% government); private sector cap AED 50,000/month; public sector cap AED 300,000/month. ADPF (Abu Dhabi): New Active Members (from Dec 1, 2023) contribute 11% employee + 15% employer; In-Service Active Members contribute 5% employee + 15% employer. Pensionable salary for government sector includes basic salary, cost of living allowance, social allowance for children, social allowance for citizen, and housing allowance. Private sector: full contractual salary including allowances. Contributions due by 15th of the following month; late payment penalty 0.1% per day.
Common questions
Do expats get a pension in United Arab Emirates?
Expats generally can't access United Arab Emirates's state pension, which is reserved for citizens. Instead, most private-sector employees earn an end-of-service gratuity — a lump sum based on your length of service and final basic salary, paid by your employer when your contract ends.
How is end-of-service gratuity calculated in United Arab Emirates?
Gratuity is typically a set number of days' basic salary for each year of service, often rising the longer you stay and capped at a maximum. The exact formula depends on your contract and length of service — you can estimate yours with our free Gulf End-of-Service Gratuity calculator.
Can I keep building a pension while working in United Arab Emirates?
Often yes — many expats make voluntary contributions to their home-country state or private pension while in the Gulf, so those years aren't "dark years" for pension accrual. The options depend on your home country, so check what voluntary contributions it allows.