The Dubai government has launched a new savings scheme for expats working in the public sector, which aims to provide employees an opportunity to enhance their savings and end of service dues. Currently, a gratuity is offered to employees at the end of their service across the UAE. The system may be voluntarily applied to private sector employees in the Emirate as well, following coordination with relevant federal and local entities.
The key features of the scheme are :
- Enhance end of service indemnities in the Government of Dubai
- Provide series of investment mechanisms in line with employees’ preferences, including Sharia-compliant ones. Employees who do not wish to invest their benefits will also be provided with options that ensure capital protection.
- Deposit financial dues starting from the date of plan enrolment. It will not include any financial dues from former years of service.
- Study the extent to which this system can be voluntarily applied to private sector employees in Dubai, following coordination with relevant federal and local entities.
- The scheme will guarantee that all government employees and their families will be provided with growth opportunities and a high quality of life, throughout their career and at the end of their service.
- The scheme provides employees the opportunity to save across different financial portfolios to grow their savings.
- Attract the best talent and enhance the flexibility and attractiveness of the labour market in Dubai
The savings scheme is managed by a board of trustees and international investment institutions, under the supervision of the Dubai International Financial Centre.
A committee will develop an action plan, set executive procedures, oversee the workflow of the scheme and achieve its objectives, while studying the possibility of extending the new system to the private sector in Dubai on a voluntary basis.