The UAE has launched a fresh end-of-service benefits scheme, providing an alternative to the traditional gratuity payment system for employees.
Companies interested in joining can register through the Ministry of Human Resources and Emiratisation (Mohre) or the Securities and Commodities Authority.
During a media briefing, Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, emphasized that the scheme’s participation is voluntary for both employers and employees. The initiative is accessible to employees across the public, private sectors, and freezone entities. Upon joining, employers can decide which staff members will be included.
Employees are given the option to either receive financial benefits upon their contract’s conclusion or to continue their investments in the scheme. They also have the flexibility to withdraw either a portion or the entirety of their voluntary contributions and investment returns.
Dr. Al Awar highlighted the scheme’s objective to safely secure and invest employee dues. It seeks to bolster investment revenues for subscribers and introduces an added voluntary contribution choice. The minister also mentioned that skilled workers could amplify their end-of-service perks by opting for high-return funds.
Steps to Register:
Employers should forward a registration request to the Ministry of Human Resources and Emiratisation.
Select an approved investment fund.
Identify the employees to be included in the scheme, ensuring prior entitlements are maintained.
Choose the desired investment fund and finalize the subscription contract, specifying the fund administrator.
Register staff for the scheme via the fund administrator, who will open a savings account for beneficiaries.
Post-registration, employers will divert a voluntary monthly contribution from the employee’s paycheck to the scheme. Alternatively, a lump sum can be transferred directly.