The General Pensions and Social Security Authority issued a circular to employers in the government and private sectors, with the aim of informing them of the rules for the pension deduction procedure or end-of-service gratuity in accordance with the provisions of Federal Decree Law No. 57 of 2023.
The circular stipulated that deductions from the pension or end-of-service gratuity were limited only to the Authority’s debt, and it was prohibited from making any deductions in favor of any other debts, whether they were in the interest of the employer or alimony debts, provided that these rules were applied to all cases of debts prior to the implementation of this decree or The following provisions shall be effective as of February 9, 2024.
According to the circular, the Authority will transfer the entire pension or bonus without any deduction for any debt except its debt, while the interested party, with regard to alimony debt, can take measures to seize the pension or bonus through the banks to which it is transferred, and not through the Authority.
The circular clarified that in all cases the Authority’s debt will be recovered from the end-of-service gratuity without limits, and that it has the right to deduct any amounts disbursed to the beneficiary unlawfully from the shares of the other beneficiary from the date of knowledge of the incident, in the proportion of what each of them deserves to the other, without prejudice to the right. The beneficiaries have recourse against the person who spent these amounts, each according to his share.
Based on the circular, the amounts owed to the Authority have a lien on all debts, and the Authority has the right to collect them in accordance with the legislation regulating that, and such provisions apply to all civilians covered by the pension laws applied by the Authority and to employers subject to their provisions.
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