The Steering Committee of the ‘Savings Scheme for Foreign Employees in the Government of Dubai’ has discussed the action plan for enrolling foreign employees into the Savings Scheme, along with other implementation mechanisms.
The new enrollment and implementation mechanisms will ensure that employees are protected and provided with opportunities to invest and expand their savings.
The scheme was launched by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, as part of Dubai’s aim to further enhance its status as an attractive career destination for outstanding talent through an integrated system that offers employees various saving opportunities across financial portfolios that can grow their benefits and savings for the future.
Mr. Abdulla Al Basti, Secretary-General of Dubai Executive Council and Chairman of the Steering Committee, stated that the Savings Scheme will play a major role in enhancing the economic and social stability that Dubai offers its employees. The latter will also contribute to strengthening the emirate’s positioning as a financial center.
Under the directives of Sheikh Hamdan, the Savings Scheme will enable Dubai to offer one of the most attractive work environments, by providing the conditions necessary for ensuring the happiness of its employees and the job and financial security to which they aspire.
“The Savings Scheme ensures financial security, fortifies employer-employee relationships, and most importantly, presents a robust opportunity for employees looking to invest their savings. The scheme is one of many initiatives that have highlighted the government’s commitment to ensuring employee satisfaction, in appreciation of their efforts and dedication. With the scheme in place, Dubai will continue to be an attractive career destination that appeals to the outstanding talent and a preferred destination for personal and professional stability.”
The board of trustees and foreign investment institutions will apply global best practices to ensure the scheme’s efficiency and effectiveness, under the supervision of DIFC. Foreign employees working in government entities will be required to join the scheme by default, subject to Law No. (8) of 2018 in regard to the management of human resources for the Government of Dubai, according to job grades and time periods.
The employer will contribute the total end of service gratuity to the scheme, starting from the date of joining the scheme, without including the financial dues for previous years of service to which current legislation applies. The percentage of the contribution to the scheme will equal the end of service benefits due to the employee. In the event that the employee is promoted or has changed his role, a change in contributions will become effective.
The rate of return will be determined by the amount invested by the employee, how it is distributed across available investment portfolios and the risks associated with it. Employee participation in the scheme will stop upon the end of their service. At this point, employees have the right to withdraw their entire end of service gratuity amount, or can choose to remain in the scheme, should they desire to.
In addition to the end-of-service gratuity that the employer is mandated to pay, the employee can make personal contributions to the scheme if desired and has the right to add or withdraw any personal savings from the scheme at any time.
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