“Pensions” show the conditions for purchasing the period of legal service for those wishing to retire at an early age

The General Authority for Pensions and Social Insurance confirmed that the pension laws allowed the insured to purchase a non -actual service period added to the years of his actual service, in order to improve the percentage of pension, as the insured wanted to retire at an early age.

The authority explained that the most important conditions for purchasing the period of legal service, according to Federal Law No. 7 of 1999 for pension and social insurance and its amendments, is that the insured has spent 20 years in service, while in Decree Law No. 57 of 2023, whose rulings are applied to those enrolled in work agencies for the first time after the date of October 31 of 2023, the period of service of the insured must be at least 25 years, or 15 years old if he is an adult to age Sixty.

The period of entitlement to the pension

The authority indicated that there is a belief or an inaccurate understanding that it is possible to purchase to complete the required age to reach the period of the pension due to the pension.

Law No. 7 of 1999 specified the purchase period for a man by about 5 years, while women can buy 10 years, while the purchase period was unified in Decree Law No. 57 of 2023 with 5 years for both men and women alike, and since the purchase service is an optional service, each of the men and women can buy any number of these years without buying full period.

The percentage granted by each year is a purchase in the pension laws applied by the authority, while each year is granted the buyer of the insured or the insured by an increase of 2% according to Law No. 7 of 1999, each year is granted a purchase from the period of the insured, which amounts to 25 to 30 years, an increase of 2.67% for each year and by 4% for each year of the period of service that exceeds 30 years, according to the rules of calculating the pension Law No. 57 of 2023.

In contrast to the period of service required for purchase, the period of service that can be purchased and the percentage of the increase per year there are no other fundamental differences in the rules of purchase between the two laws, and it is indicated in this context that it is not permissible to exceed that period that qualifies it to obtain the pension by the maximum of (35) years.

Calculate the purchase costs

The purchase costs are calculated on the basis of the subscription account salary at the date of submitting the purchase request, which are multiplied by 20%, which is the percentage of contributions for the insured and the employer for the period purchased, multiplied by the period to be purchased for months.

For example, and for those who are covered in Law No. 7 of 1999, if the salary of one of the insured subscriptions is 20,000 dirhams and wants to buy 5 years, this will be calculated by about 20,000 x 20% x 60 months = 240,000 dirhams.

As for those covered by Decree Law No. 57 of 2023, the purchase costs are calculated on the basis of the subscription account salary at the date of submitting the purchase request, multiplied by 26% multiplied by the period to be purchased for months.

For example, if the account of one of the insured subscription is 20,000 dirhams and he wants to buy 5 years, this will be about 20,000 x 26% x 60 months = 312,000 dirhams.

It is also required for the purchase that the insured be at the head of his work.