The UAE has announced a new system for end-of-service benefits for workers in the private sector and freezones. Public sector workers will also be able to participate in the scheme.
The initiative will establish an savings and investment fund that will be overseen by the Securities and Commodities Authority in coordination with the Ministry of Human Resources and Emiratisation. Employees can save and invest their end-of-service benefits in various investment options:
Risk-free investment that maintains capital;
Risk-based investment where the risk varies between low, medium and high; and
Sharia-compliant investment.
The goal of the scheme is to safeguard employees end-of-service benefits and encourage a culture of saving.
It will be OPTIONAL for employers to join the scheme.
