A statement of pensions on the rules of debt deduction from the pension or the end of service bonus

Abdallah Shahin - | Business

The General Authority for Pensions and Social Insurance has issued a circular to government and private sector work authorities, informing them about the regulations for deducting from pensions or end-of-service gratuities in accordance with Decree Law No. 57 of 2023.

The circular states that deductions for pension or end-of-service benefits can only be made to cover the authority's debts. It is strictly prohibited to make any deductions for other debts, including those related to the employer or alimony. These rules apply to all previous debts, as well as any debts incurred after the issuance of this decree. The circular will come into effect on February 9, 2024.

As per the circular, the authority will transfer the full pension or reward without any deductions, except for religious obligations. However, if the authority owes alimony debt, it can take steps to seize the pension or reward through the banks involved in the transfer, rather than through the authority itself.

The circular stated that the authority's debt is always repaid from the end of service reward without any restrictions. It also mentioned that the authority has the right to subtract any amounts that were spent on individuals who were not entitled to it from the shares of other beneficiaries. This deduction can be made from the date when the incident was known. Furthermore, the circular emphasized that this practice is unfair. The beneficiaries are individuals who receive these funds, with each person receiving a portion based on their part.

According to the circular, the authority has the legal right to collect all debts owed to it, and this right applies to all individuals covered by the pension laws enforced by the authority, as well as the relevant working authorities.

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Abdallah Shahin
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