UAE Pension Boost: Who Can Buy Extra Service Years?

The UAE’s General Pension and Social Security Authority (GPSSA) has announced that eligible Emirati employees can increase their retirement pension by purchasing additional service years, subject to specific conditions under the country’s pension laws. In guidance issued on October 15, 2026, the authority explained that insured individuals can extend their recognised contribution period, potentially increasing their future pension value. Eligibility depends on whether employees are covered by the 1999 or 2023 Pension and Social Security Law, with different minimum service requirements, purchase limits and contribution rates applying to each category.

GPSSA Explains How Additional Service Years Can Increase UAE Pensions

Purchasing additional service years, officially known as the Purchase of a Nominal Service Period, allows insured Emiratis to add recognised contribution years to their existing employment records. These additional years are treated as part of the individual’s service period for pension calculation purposes, potentially resulting in higher retirement benefits.

The initiative is designed to support long-term financial planning, particularly for employees who have already met the minimum service conditions and want to improve their pension entitlements before retirement.

However, GPSSA has clarified that purchasing service years cannot be used to meet the initial minimum service requirement. Employees must first qualify under the applicable pension law before submitting a purchase application.

Who Can Purchase Additional Pension Service Years in the UAE?

The requirements differ depending on which federal pension law covers the insured employee. GPSSA distinguishes between individuals registered under the Pension and Social Security Law of 1999 and those covered by the 2023 Law.

Eligibility Under the 1999 Pension Law

Emirati employees covered by the 1999 Pension and Social Security Law must complete at least 20 years of service before applying to purchase additional years.

Under this legislation, male employees may purchase up to five additional years, while female employees may purchase up to ten years.

For example, an employee aged 47 with 17 years of service cannot purchase three additional years to reach the required 20-year threshold. The employee must first complete the mandatory service period before becoming eligible.

Eligibility Under the 2023 Pension Law

Employees covered by the 2023 Pension and Social Security Law must meet one of two conditions: complete at least 25 years of service, or complete 15 years of service and reach the age of 60.

Under this legislation, both men and women may purchase a maximum of five additional service years.

The 2023 Law generally applies to Emiratis who joined an employer covered by GPSSA for the first time on or after October 31, 2023. Employees already insured under the 1999 Law generally remain covered by its provisions, even if they move to a new employer.

Maximum Pension Service Period Limited to 35 Years

GPSSA has also confirmed that purchasing additional service years cannot increase an employee’s total recognised service period beyond 35 years, the point at which the pension reaches its maximum applicable rate.

An employee with 33 years of recognised service may purchase up to two additional years, while someone with 31 years may purchase up to four years, provided all other eligibility conditions are satisfied.

Employees are not required to purchase the maximum period available under their pension law. Instead, they can choose the number of additional years that best suits their retirement planning needs, within the permitted limits.

How GPSSA Calculates the Cost of Additional Service Years

The amount payable for purchasing service years is calculated using the employee’s contribution account salary at the time of application, the applicable pension contribution rate and the number of months being purchased.

For employees covered by the 1999 Law, the contribution rate is 20%, while employees under the 2023 Law are subject to a 26% rate.

The calculation follows this formula:

Contribution account salary × applicable contribution rate × additional service months

Because the calculation is based on each applicant’s contribution account salary and the requested period, the total amount will differ between employees. GPSSA advises individuals to assess the potential improvement in their pension before committing to a purchase.

Payment Options and Instalment Conditions

Eligible applicants can settle the required contribution amount in full or through monthly instalments.

Those choosing instalments must make an initial payment covering 50% of the total amount, with the remaining balance settled within the period permitted by GPSSA. The repayment period generally cannot exceed four years, and payments must be completed before the employee reaches the applicable age limit or ends their service, whichever occurs first.

Each monthly instalment must also represent at least 25% of the contribution account salary, according to the authority’s stated conditions.

Applicants must be actively employed when submitting their request. If employment ends before the full contribution amount is paid, the additional recognised service period will be adjusted according to the payments already completed.

In the event of an insured employee’s death before the instalments are fully settled, outstanding amounts may be recovered from eligible beneficiaries’ pensions in accordance with applicable legislation.

How to Apply for Additional UAE Pension Service Years

Emirati employees interested in increasing their pension through additional service years can apply through GPSSA’s Ma’ashi digital platform.

The process requires eligible individuals to access their account using UAE PASS, select the relevant service, specify the requested additional period and choose a payment method before submitting the application for review.

Once an application is approved, employees should follow the authority’s payment instructions and verify that the purchased period has been added to their recognised service record.

GPSSA Encourages Emiratis to Plan Ahead for Retirement

The latest guidance highlights the importance of understanding UAE pension regulations before making long-term retirement decisions. Although purchasing additional service years can increase recognised contributions and potentially improve pension entitlements, the benefits depend on the individual’s age, employment history, applicable legislation and payment obligations.

GPSSA encourages insured Emiratis to review their pension records, confirm their eligibility and evaluate the financial implications of purchasing additional years before applying.

By understanding the differences between the 1999 and 2023 UAE pension laws, eligible employees can make informed decisions about their retirement planning and explore opportunities to strengthen their future financial security.