Dubai to implement end-of-service savings scheme for expats from July 2022
The photo has been used for illustrative purposes.
Dubai will implement the end-of-service savings scheme from July 2022 for the expatriates working in the government offices in the emirate, according to Dubai International Financial Centre (DIFC).
The savings scheme will benefit all the employees working in Dubai government departments.
The DIFC, the entity supervising the implementation of the Provident Fund for Dubai government foreign employees, held a number of virtual meetings with executive officials of the entities affiliated with the Dubai government to discuss the details of the plan to be launched in July.
These meetings are part of a series of direct awareness sessions for institutions and employees to get acquainted with all the details of the project in order to achieve the desired goals.
Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, approved the launch of the fund in March 2022 with the aim of attracting and retaining talents by providing an integrated system that provides various savings opportunities for employees in financial portfolios that develop their entitlements and savings to ensure their present and future.
The project, which came after the Dubai International Financial Center launched a plan for employee savings funds in the workplace, targets foreign employees in government agencies as a first stage, with the scope of implementation expanding in the later stages.
The first meetings witnessed the attendance of executives, human resources managers and employees in the government agencies that will start implementing the new system.
The attendees learned about the advantages of the system, subscription conditions and types of financial contributions, in addition to the procedures followed at all levels, which include the employee, the employer, and the fund’s supervisory board.
Fund Objectives:
— Ensuring and protecting the rights of employees and providing opportunities to develop their entitlements and savings.
— Attracting the best talents and minds and enhancing the flexibility and attractiveness of the Dubai labour market.
— Establishing a culture of saving for employees and financial planning for their present and future.
Alya Hussain Al Zarouni, Executive Vice President of Government Services and Registration - DIFC Authority, said: “The move to expand the coverage of the Employee Savings Funds Scheme in the workplace supports Dubai’s vision of establishing itself as an attractive talent hub.
“There is no doubt that this comprehensive savings plan will yield valuable benefits on retirement plans, while in line with international best practices in this field.
“This is the first plan of its kind in the region, and we expect many cities and countries to follow suit in the coming years. And in cooperation with leading bodies in this sector, such as Equiom, Zurich Workplace Solutions, and Mercer, we will continue to provide best-in-class services and set superior standards for workplace savings.”
An incubator city for experiences
Mohammed Abdul Rahman Al Hawi, Director of Policies and Strategies for Economic Development Department at the General Secretariat of the Executive Council of Dubai, confirmed that the Provident Fund is a qualitative addition to the Dubai government, as it plays a major role in enhancing economic and social stability that the government provides to its employees.
He added: "The fund will contribute to strengthening Dubai's position as a global financial center, as it is an incubator for expertise and competencies from around the world, in accordance with international best practices in the interest of the workforce and its development within an integrated system that enhances the attractiveness and flexibility of the labour market in the emirate."
Eman Saleh Bin Khatam, Director of Policy and Program Support Department at the Dubai Government Human Resources Department, said: “Thanks to the savings plan, employees will be able to efficiently manage and finance their end of service benefits, and the plan will give foreign employees an effective way to save and invest with high confidence.
There is no doubt that the launch of the Provident Fund for Dubai Government employees comes within the framework of a clear goal of giving employees full control over their financial future.”
Successful experience
When launched in February 2020, the Employee Workplace Provident Fund Scheme was the first of its kind in the region, as it restructured the end-of-service benefits plan for employees working in the DIFC in line with international retirement savings standards. The plan has since achieved remarkable success in terms of scale and performance, despite the outbreak of the “COVID-19” pandemic immediately after its launch.
Equim will be the principal custodian of the fund and the independent legal owner of the employer contributions to ensure that it is managed according to the aspirations and requirements of the employees. The principal trustee of the fund.
