DUBAI, 15th March, 2022 (WAM) — The Steering Committee of the ‘Savings Scheme for Foreign Employees in the Government of Dubai’ held its first meeting to discuss the action plan for enrolling foreign employees into the Savings Scheme, along with other implementation mechanisms.
The new enrolment and implementation mechanisms will ensure that employees are protected and provided with opportunities to invest and develop 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.
Abdulla Al Basti, Secretary-General of Dubai Executive Council and Chairman of the Steering Committee, said the Savings Scheme will play a key 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 centre, embodying the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.
Under the directives of H.H. Sheikh Hamdan, the Savings Scheme will enable Dubai to provide 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.
Al Basti said, “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 outstanding talent and a preferred destination for personal and professional stability.”
This announcement was made during a Steering Committee meeting that took place at the General Secretariat of The Executive Council in Emirates Towers, in the presence of committee members Abdulrahman Al Saleh, Director-General of the Department of Finance; Dr. Lowai Belhoul, Director-General of the Legal Affairs Department; Abdullah bin Zayed al-Falasi, Director-General of the Department of Human Resources; Essa Kazim, Governor of Dubai International Financial Centre (DIFC); and Ahmad bin Meshar, Secretary General of The Supreme Legislation Committee.
Under the supervision of DIFC, the board of trustees and international investment institutions will apply global best practices to ensure the efficiency and effectiveness of the scheme. Joining the scheme will be by default for foreign employees working in government entities, subject to Law No. (8) of 2018 in relation to the management of human resources for the Government of Dubai, according to job grades and over successive time periods. The employer and the Department of Finance will lead this. 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 accordance with Human Resources legislation. 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 depend on 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.
The Steering Committee clarified that the scheme would provide several investment portfolios with varying returns and risks, as well as Islamic Shariah compliant portfolios. All employees will be enrolled by default in the capital protection portfolio, at which point they have the right to choose their preferred investment portfolio approach.