DUBAI, 15th March, 2022 (WAM) — The Steering Committee of the “Dubai Government Foreign Employees Savings Scheme” held its first meeting to discuss the action plan for the enrollment of foreign employees in the Dubai Government Scheme. savings, as well as the implementation of other mechanisms.
The new enrollment and enforcement mechanisms will ensure employee protection and the ability to invest and grow their savings.
The program was launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, as part of Dubai’s aim to further enhance its status as an attractive business destination for exceptional talent through an integrated system that provides employees with various savings opportunities through financial portfolios that can increase their benefits and savings for the future.
Abdulla Al Basti, Secretary General of the Dubai Executive Council and Chairman of the Steering Committee, said the savings program will play a key role in improving the economic and social stability that Dubai offers its employees. The latter will also help strengthen the emirate’s positioning as a financial center, embodying the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.
Under the leadership of His Highness Sheikh Hamdan, the savings program will enable Dubai to offer one of the most attractive working environments, providing the conditions necessary to ensure the happiness of its employees and the professional and financial security to which they aspire.
Al Basti said: “The savings program provides financial security, strengthens employer-employee relationships and, most importantly, represents a solid opportunity for employees who wish to invest their savings. The program is one of many initiatives that have underscored the government’s commitment to ensuring employee satisfaction, in recognition of their efforts and dedication.With the program in place, Dubai will continue to be an attractive professional destination that appeals to exceptional talent and a preferred destination for personal and professional stability”.
The announcement was made during a meeting of the Steering Committee held at the General Secretariat of the Executive Council at Emirates Towers, attended by committee members Abdulrahman Al Saleh, Director General of the Ministry of Finance; Doctor 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 the Dubai International Financial Center (DIFC); and Ahmad bin Mesar, Secretary General of the Supreme Legislative Committee.
Under the supervision of the DIFC, the Board of Directors and international investment institutions will apply global best practices to ensure the efficiency and effectiveness of the program. Enrollment in the scheme will be by default for foreign employees working in government entities, subject to Law no. (8) of 2018 regarding Human Resource Management for the Government of Dubai on the basis of echelons and for subsequent periods. The employer and the Ministry of Finance will guide this. The employer will pay into the scheme the full amount of the end-of-service gratuity, from the date of joining the scheme, excluding the economic seniority quotas to which the legislation in force applies. The percentage of contribution to the scheme will be equal to the end-of-career indemnity due to the employee, in compliance with Human Resources regulations. In the event of promotion or change of position of the employee, a change in contribution will become effective.
The rate of return will depend on the amount invested by the employee, its distribution among the available investment portfolios and the associated risks. Employee participation in the program will cease upon termination of service. At this point, employees have the right to withdraw the full amount of the end-of-service benefit, or they can choose to remain in the plan if they wish.
In addition to the end-of-service indemnity that the employer is required to pay, the employee can personally contribute to the scheme if he wishes and has the right to add to or withdraw his personal savings from the scheme at any time.
The steering committee made it clear that the program would provide different investment portfolios with varying returns and risks, as well as Islamic Sharia-compliant portfolios. All employees will be enrolled in the capital protection portfolio by default, in which case they will be entitled to choose their preferred investment portfolio approach.
Translated by: Mina Samir Fokeh.