UAE: Circular on Rules for Deducting Loan Repayments From Pensions Issued

United Arab Emirates News developments

UAE: Circular on Rules for Deducting Loan Repayments From Pensions Issued

Al Bayan, 12 February 2024: The UAE’s General Pensions and Social Security Authority has issued a circular to employers in the public and private sectors to highlight the rules for the deductions of pensions or end-of-service gratuities in line with Federal Decree-Law No. 57/2023.

The Circular states that deductions from the pension or end-of-service gratuity must only be limited to the Authority’s debt. The Authority therefore must not make any deductions in favour of any other debts, whether they were in the interest of the employer or alimony debts.

The Decision came into force on 9 February 2024.

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Tanya Jain