UAE launches new end-of-service scheme – here’s how to sign up

Employees have the option of receiving financial benefits after termination of employment or continuing to invest in the end-of-service plan.

The UAE’s alternative end-of-service plan is now active and companies can approach the Ministry of Human Resources and Emiratization (MoHRE) or the Securities and Commodities Authority to register.

At a press conference on Wednesday, Dr. Abdulrahman Al Awar, Minister of Human Resources and EmiratizationHe said participating in the system is optional for both employers and employees.

The scheme is open to employees working in the public and private sectors, and free zone entities. If employers decide to enroll in the scheme, they can specify which staff members will be part of the scheme.

Employees have the option of receiving financial benefits after termination of employment or continuing to invest in the end-of-service plan.

The minister said that employees can request total or partial withdrawal of voluntary contribution amounts and investment returns.

The end of service scheme for UAE employees working in public, private and free zone companies offers an alternative system to the existing practice of paying gratuities and aims to protect dues while ensuring that they are invested appropriately. safe way.

The plan aims to increase subscribers’ investment income and offers an additional voluntary contribution option.

The minister said skilled workers can increase their end-of-service benefits by choosing high-performing funds.

How to register

The employer will submit an application to the Ministry of Human Resources and Emiratization and then choose an approved investment fund. They must choose the employees they want to enroll in the plan while ensuring that the rights of their employees from the previous period are preserved.

The entrepreneur may select the investment fund and sign the subscription contract, identifying the fund manager. The participation and registration of establishment staff in the scheme can be done through the fund administrator by opening a savings account for the beneficiaries.

After registration, the employer will transfer a voluntary monthly contribution from the beneficiary’s salary. Funds can be transferred in a lump sum directly to the plan.

News Source: Khaleej Times