UAE Pension Law 2023: New GPSSA Benefits for Emirati Women

20 March 2025

Josleen Deeb

Effective Date Immediately, pursuant to Federal Law No. 57 of 2023

The UAE has enhanced pension benefits for Emirati women under Federal Law No. 57 of 2023, effective immediately, with key changes including child-care leave credit, widow's pension adjustments, shorter vesting periods for women with large families, and gender-equal distribution of benefits.

Dubai: Key changes include the ability for Emirati mothers to take up to three years of unpaid childcare leave while accruing pensionable service, an increase in widows' pension to 40%, and a shorter vesting period for women with multiple children. Furthermore, the law ensures gender-equal distribution of pension benefits and allows women to purchase up to 10 years of additional pensionable service. These changes aim to improve financial security and reflect the UAE's commitment to gender equality. Employers and HR teams should update their policies to reflect these changes.

1. Background

The General Pensions and Social Security Authority (GPSSA) has confirmed key enhancements to Emirati women’s pension entitlements under the recently enacted Federal Law No. 57 of 2023—underscoring the UAE’s commitment to gender equality and financial security for mothers and widows.

2. Key Enhancements

·       Child-Care Leave Credit: Emirati mothers may now take up to three years of unpaid child-care leave while continuing to accrue pensionable service.

·       Widow’s Pension Uplift: Widows receive 40% of the deceased spouse’s pension; an equal 40% is shared among their children, and the remaining 20% is allocated to the deceased’s parents.

·       Shorter Vesting for Women with Large Families: For married, divorced or widowed women:

o   Two-year reduction in the contribution period for each child from the fifth to sixth child

o   3.5-year reduction per child from the seventh child onward

·       Gender-Equal Distribution: Pension benefits are now equally split between sons and daughters, eliminating any gender disparity.

·       Service Purchase Rights: Emirati women retain the right to buy up to 10 years of additional pensionable service (compared to five years for men).

3. Implications for Stakeholders

·       Emirati Women gain stronger long-term financial protection through extended pension accrual during child-care leave and accelerated vesting thresholds.

·       Widows and Orphans benefit from a structured, tiered distribution model that safeguards both the spouse and dependents.

·       Employers and HR Teams should update internal policies on leave, payroll and pension-service calculations to reflect these new entitlements.

4. Next Steps & Compliance

·       Policy Review: Amend your leave-management and pension-service processes to incorporate the three-year child-care leave accrual.

·       System Updates: Configure payroll and HR-information systems for automatic recalculation of pension contributions and service-purchase elections.

·       Employee Communications: Issue clear guidance to staff on new leave rights, vesting reductions and service-purchase options.

ALKTEBI TOUCH

Our Labour & Employment team advises both individuals and businesses on UAE pension-law developments. We can assist you with:

·       Interpreting Federal Law No. 57 and its implementing regulations

·       Revising HR policies, handbooks and employment-service agreements

·       Auditing pension-service records and leave-accrual processes

·       Advising on service-purchase strategies and compliance reporting

For tailored guidance on navigating these pension-law changes, please contact our GPSSA specialists.