The Abu Dhabi Executive Council has approved a measure to set aside Dh4.81 billion for a pension fund to keep up with rising salaries.
The council yesterday said the amount would be allocated to the Abu Dhabi Retirement Pensions and Benefits Fund to "address the sudden shortfall from the increase in salaries".
The fund will also adopt a framework enabling it to meet all additional financial liabilities.
Many FNC members were pleased to hear about the allocation. They had earlier asked ministers to raise pensions and help retired Emiratis to keep up with inflation.
On National Day last year, the President Sheikh Khalifa ordered pay rises of up to 45 per cent for all Emirati federal Government employees.
But it was not specified whether it would affect those still working or retirees as well.
The FNC has put forward a recommendation to the Government that there be no minimum age to receive retirement benefits.
As it is, workers must have 20 years of service and be over the age of 55 to receive a pension. Women can retire at 50.
But some people are forced to retire after 20 years of service while they are under the retirement age, putting them in debt as they await pensions.