Match private pensions to public levels, urges FNC
Members also call for increase in payouts to keep up with inflation
Emiratis working in the private sector should be entitled to the same pension as government employees, Federal National Council members said yesterday.
The move would help to encourage more UAE nationals to join private companies and ensure there is proper provision for retirees, particularly those with large families.
Several representatives raised examples of Emiratis with large families with pensions as low as Dh10,000 a month.
Hamad Al Rahoomi, who represents Dubai, said the current situation does not encourage UAE nationals to look beyond government jobs.
“Most Emiratis don’t look to the private sector due to the low pensions they receive when they retire,” he said.
The debate has often been raised in the chamber and the proposed measures have been sent to the Cabinet before, but have yet to be signed into law.
Mr Al Rahoomi later said the maximum should be more than Dh50,000.
“The amended pension law will encourage Emiratis, particularly senior officials, to join the private sector. This will also allow private companies to attract young talented people,” Mr Al Rahoomi later told The National.
Members argued that, more broadly, pensions should be raised for Emiratis in the public and private sectors.
Salim Al Shehhi, who represents Ras Al Khaimah, asked that pensions be increased across the board.
“Those who have retired helped to build our country, they should be appreciated,” he said. “Some of those include military and civil servants.”
The amendment of law No 7 of 1999, which governs retirement, pension and social security, was approved by the Cabinet upon recommendations by the FNC. It is waiting to be signed into law.
It contained measures that ensured pensions would keep up with inflation, to allow retirees to manage the cost of living.
Amal Al Qubaisi, President of the FNC, told the chamber that they and the Cabinet are in agreement.
Also yesterday, members asked that a study be carried out to calculate Emiratis’ average monthly expenditure.
The chamber will send the results to the Cabinet, asking that salaries increase to keep up with the impact of VAT.
Last month, members asked Obaid Al Tayer, Minister of State for Financial Affairs, the same, but he said there would be no unplanned pay increases.
In a second recommendation yesterday, the FNC asked that pensions at least rise by inflation for retired families earning less than Dh30,000 per month.
Retirees also appealed for higher pensions.
“We are not exempted from any fines, or given any concessions like other countries, and while prices increase, our pensions remain the same” said Emirati Salem Obeid, 62, who worked in a government job for more than 20 years.
“The last pension increase was around five years ago.”
Um Khalifa, 62, retired in 1999, after 25 years in government. She collects a pension of Dh17,300 per month, but said she has repayments on housing loans to meet, and domestic workers to pay.
She also said she would like to return to work, possibly part time, but that there are few jobs for the older generation.
“The majority of us have loans, helpers and some of us even have young children to support,” she said.
“The pension we get barely covers that.”
Salim Al Shehhi, who represents Ras Al Khaimah, asked that pensions be increased across the board