Step aims to attract and retain talent by providing an integrated system offering various savings opportunities
Dubai’s end-of-service savings scheme for expatriates working in government services will be implemented from July 1, authorities have announced.
The Dubai International Financial Center (DIFC), the entity overseeing the implementation of the program, held several virtual meetings with senior officials from various government entities to discuss the plan.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, had approved the launch of the program in March 2022. The aim is to attract and retain talent by providing an integrated system that offers various savings opportunities.
The scheme was conceptualized after the DIFC Employee Workplace Savings (DEWS) plan. It targets expatriates in Dubai government entities initially, with the possibility of expanding its implementation in later stages.
Alya Hussain AlZarouni, Executive Vice President – Operations, DIFC Authority, said: “This comprehensive savings plan is used for retirement planning and aligns with global best practice. The approach is a first for the region and over time we expect other cities and countries to adopt a similar approach in the years to come.
“Together with industry leaders such as Equiom, Zurich and Mercer, we will continue to deliver a best-in-class offering, reforming the landscape of workplace savings.”
Mohammad AlHawi, director of policy and strategy, economic development at the General Secretariat of the Executive Council in Dubai, said the program will play a “key role” in enhancing the economic and social stability the government provides to its employees.
Iman Saleh bin Khatam, Director of Policy and Program Support at the Government of Dubai’s Human Resources Department, said: “The savings scheme will allow employers to efficiently manage and fund end-of-service benefits while providing foreign employees a way to save and invest with confidence. With DEWS, we empower employees to take control of their financial future. »
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Since its launch in February 2020, DEWS has gone from “strength to strength, both in size and performance, despite the outbreak of Covid-19” almost immediately after its introduction.
Global professional services provider Equiom will act as the primary trustee of the scheme and independent legal owner of contributions made by employers, while ensuring that its beneficial interest accrues to employees. Zurich Workplace Solutions will support employers and employees through the administration and management of the plan. Investment services provider Mercer will provide independent, tried and tested investment advice to the primary trustee of the plan.
The plan offers employees the opportunity to save more through voluntary savings. Additionally, DEWS allows participants to choose a plan commensurate with the type of risk they are willing to take.