The benefits scheme will “protect the savings of employees” and encourage financial stability for families, Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said on Monday.
Under the supervision of the Securities and Commodities Authority and in collaboration with the Ministry of Human Resources and Emiratisation, private sector investments and savings funds will be set up, and eligible employees may invest their bonuses in any of these schemes.
The scheme includes 3 options (1) Risk-free investment that preserves capital (2) Risk-based investment where risks range from low, medium and high (3) Sharia-compliant investment that adheres to Sharia.
Once the employment relationship with the employer ends, employees will no longer receive their end-of-service gratuity. Even nominated employees will receive end-of-service gratuity benefits in the event of death.
Employees of “all professional levels and work styles” are eligible under the scheme and public sector employees have the option of a “savings and investment goal”
For employers, the new scheme is not mandatory, if they choose it, a monthly contribution must be made after joining.
At the federal level, this is the first rewarded investment program in the United States
UAE. The implementation date has not yet been disclosed by the relevant authorities
Authorities