Adnoc to spend Dh14bn to boost employee pensions
The company started calculating pensions on 80 per cent of staff members' gross salary from January 1
Abu Dhabi National Oil Company, the state-controlled energy producer, is setting aside Dh14 billion in backdated costs as it prepares to boost pension packages for its 24,000 Emirati employees.
Adnoc started calculating employee pensions based on 80 per cent of their gross salaries at the start of the month, increasing what they receive by 20 per cent, the Abu Dhabi Government Media Office said in a tweet. The company, among the biggest state-owned employers in the country, has also signed an agreement with the Abu Dhabi Pension Fund on Tuesday, overseen by Sheikh Khalid bin Mohamed bin Zayed, a member of the Executive Council and chairman of Abu Dhabi Executive Office, the media office said.
“Adnoc’s newly calculated retirement pensions will allow its employees to enjoy bigger retirement pensions and a better quality of life, while positioning Adnoc as a desirable workplace for skilled UAE talent,” a separate tweet said.
The backdated expense will be covered by Adnoc, “removing any financial burden” for its employees as a “gesture of appreciation for their efforts and dedication”.
Adnoc’s announcement follows the Executive Council’s December 31 decision to issue a new salary scale for all Abu Dhabi government employees, which also included plans to increase retirement pensions “significantly".
The government unified and consolidated all salaries and allowances for employees in Abu Dhabi civil government entities from January 1. The new scheme factors in all grades of employment, according to a media office tweet at the time.
“The new salary scale aims to increase retirement pensions, ensure parity across government entities and improve performance,” according to the directive, which also said employees’ gross salaries will not be affected by the new move and that new “motivating incentives” will be introduced “to attract and reward outstanding talent”.
Previously, repayments were calculated only on basic salary and the changes will help achieve excellence in government performance, in line with “the leadership’s wishes to enhance liveability standards for UAE nationals during and after their civil service careers”, the media office said in a separate statement, carried by state news agency Wam at the time.
By unifying the salary scale, grading systems and allowances across all government entities, the Executive Council said it hopes to "achieve equality and fairness, while enhancing competitiveness within the government sector".
Updated: January 7, 2020 05:47 PM