The Pensioneer Trustee Company (Guernsey) Limited


UAE gratuity pay not enough for retirement

February 22, 2015

Retirement crisis looms for most UAE residents due to lack of retirement savings plan.

About eight out of 10 people (83 per cent) in the UAE are now feeling anxious that their gratuity pay won't be sufficient to meet their retirement needs, according to a new study by Zurich International Life.

Unlike most developed countries, the UAE has no mandatory pension system in place, so the majority of employees who choose to go back to their home country and retire will likely have to rely solely on their gratuity to get by as they grow older.

Gratuity serves as a separation pay for employees at the end of their contract. The amount received depends on the staff’s last basic salary and the length of service. Allowances and other compensation outside the basic salary are usually not included in the gratuity calculation

UAE expatriates said companies only need to increase the gratuity provisions so that they will have more savings to look forward to when they retire.

Ruth, an expatriate from the Philippines who is in her 40s, has been working for the same company for seven years now. She calculated that if she quits her job soon, she will receive about Dh30,000 in gratuity.

"If I retire with that amount of money, that's not going to last me several years. That amount is a joke," she said.

Read more

Contact us

The Pensioneer Trustee Company (Guernsey) Limited
Ground Floor, 10 Lefebvre Street
St Peter Port, Guernsey
Channel Islands GY1 2PE

T +44 (0) 1481 743760

Privacy Policy

Terms & Conditions

Website Designed by The In-Marketing Partnership

Receive our International Pension & Benefits newsletter

Regulatory Information

The Pensioneer Trustee Company (Guernsey) Limited is licensed by the Guernsey Financial Services Commission under The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000 and subject to The Pension Licensees (Conduct of Business) & Domestic and International Pension Scheme and Gratuity Scheme Rules (No.2) 2017.