Those who are based in the Dubai International Financial Centre (DIFC) can look forward to better and more secure benefits, as the centre will be launching a new scheme for employees.
Just recently, the DIFC announced the launching of the Employee Workplace Savings (DEWS), a scheme that will provide end-of-employment benefits for workers, as part of a funded and professionally managed contribution programme.
‘Employee Workplace Savings’ Scheme to be Launched by DIFC
Based on a DIFC press release, the new programme is set to be launched on January 2020. But what exactly is the DEWS scheme all about? Basically, the new programme will:
- Offer a low-cost investment platform for receiving mandatory employer end-of-service contributions on behalf of employees; and
- Include any additional voluntary savings by employees, such as cash or cash equivalent options for those who do not want to take investment risks.
The DEWS scheme will be advantageous for both employers and employees. For instance, companies would know their exact liabilities to employees. Meanwhile, workers can expect secure benefits, regardless of whether or not their employer is going out of business. They can also opt to earn returns through a simple and cost-effective programme.
“Equiom, a trust services provider, has been selected to act as master trustee of the DEWS plan, whilst Zurich Middle East has been selected as the scheme administrator,” the DIFC statement read. “Zurich will be assisted in its duties by Mercer as an investment adviser, and Smart Pension as a technology services provider.”
The CEO of DIFC Authority, Arif Amiri, commented: “Based on the extensive experience and sterling reputation of the selected service providers, having implemented and participated in similar schemes in a number of other jurisdictions, also in the region, we are confident that their collective expertise of over 70 years in this field will help secure better employee end-of-service benefits for the DIFC workforce.”
Soon, Zurich Middle East will start the enrollment process with DIFC employers. Notably, employers may opt out of the new scheme, as long as they have a qualifying alternative scheme certificate from the DIFC Registrar of Companies. The guidelines on what would qualify as a suitable alternative scheme will be released after September 15, 2019.
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Indeed, programmes such as these would greatly benefit employees, helping them to save more from their hard-earned money… Speaking of which, here are some tips for saving money in Dubai, so that you can manage your finances more wisely and effectively.