Raise child allowance to encourage Emiratis to have more children

The FNC is expected to discuss topics from creating an optional pension provision for small-business owners to raising child allowances when it convenes on Tuesday.

ABU DHABI // An increase in child allowances and linking pensions to inflation are key issues up for discussion at the FNC on Tuesday.

Obaid Al Tayer, the Minister of State for Financial Affairs, is also expected to be asked about creating an optional pension provision for small-business owners.

Mosabeh Al Kitbi (Sharjah) will ask the minister to increase the child allowance for fathers from Dh600 to Dh1,000 for each child.

“Today we suffer from the high costs of living. Many people are not having children because their income is not sufficient,” he said. The increase in child allowances will motivate families to have more children, Mr Al Kitbi said.

“Our aim is to fix part of the current demographics of the country. Sadly, we are the minority and this move will have an effect,” he said.

The child allowance was last increased in 2006 when it doubled to Dh600.

Meanwhile, Dr Mona Al Bahar (Dubai) will ask the minister about pension payments to the heirs of a deceased working woman.

Certain jobs, she said, such as teachers, for example, have a low pension payment and many families are dependent on it.

“Families cannot live with the minimum amount – life costs are expensive. She did her job – this is her exerted labour. So instead of cutting it off completely we have to see what the families need.”

Ahmed Al Mansouri (Dubai) plans to ask about linking the monthly pension payment to the cost of living.

“The current pension system does not care about inflation rates but imposes a pension that does not change with ... prices and the rising cost of living,” he said.

“Linking the pension funds ... provides reassurance to them and maintains a decent standard of living for them after years of giving.”

Mr Al Mansouri said he will also discuss optional participation in a pension plan for those not covered, such as owners of small businesses.

“We want to expand and this plan is consistent with the strategic objectives set by the [Pension] Board on the expansion and improvement in the services provided to retired participants and the community. This will also generate revenue. It’s a win-win situation.”

The FNC session starts at 9am in Abu Dhabi and is open to the public.