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Dubai to implement pension plan for expats starting July 1

 

The Dubai Government will implement a pension plan for expatriates working in government offices starting on July 1, according to Dubai International Financial Centre (DIFC).

The savings scheme will benefit all the employees in Dubai government departments. “This comprehensive savings plan is utilised for retirement planning and aligns with global best practices,” said Alya Al Zarouni, executive vice president of operations at DIFC Authority.

The retirement scheme was launched in March by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and will be added to the UAE’s current gratuity scheme.

Authorities are eyeing an expansion of the pension plan to cover employees in the private sector at a later stage.

UAE pension plan: How does it work?

Expats working in Dubai’s public sector will automatically be enrolled in the pension plan where their employer will contribute to the plan from the date of joining.

The percentage of contribution equals the gratuity due to the employee. Employees can also choose to make their own contributions to the scheme, which they can withdraw as personal savings any time.

ALSO READ: How to calculate pension in UAE

Global professional services provider Equiom will act as the master trustee of the scheme and the independent legal owner of contributions made by employers, the DIFC said

“Thanks to the savings plan, employees will be able to efficiently manage and finance their end of service benefits, and the plan will give foreign employees an effective way to save and invest with high confidence,” said Eman Saleh Bin Khatam, Director of Policy and Program Support Department at the Dubai Government Human Resources Department. ICA/Expat Media


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