The Dubai International Financial Center revealed the details of its plan for employee savings in the workplace, which will ensure the financial future of employees of companies based in the center, before the implementation of the plan, as of February 1, 2020.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the Dubai International Financial Center, stressed that “Dubai is entering a new stage in its achievements path with clear goals, the most important of which is consolidating its position as the capital of the new global economy.” His Highness stressed that “ensuring the financial future It promotes the psychological stability of workers, gives them confidence and encourages them to excel. ”

The innovative plan aims to restructure the current system of end-of-service benefits and bonuses, into a specialized, managed and funded savings plan based on the payment of specific contributions.

New stage

In detail, the Dubai International Financial Center revealed the details of its plan for employee savings in the workplace, which will ensure the financial future of employees of companies based in the center, before the implementation of the plan, as of February 1, 2020.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the Dubai International Financial Center, stressed that “creating the best and most stable working environments is one of the priorities of the center to maintain its leading position, by providing various guarantees that guarantee to all its employees a supportive climate And the atmosphere that enables them to present their best ideas and contributions that serve their institutions, and confirms the leadership of the center among the best financial centers in the world ».

His Highness said: «Dubai is on the verge of a new stage in the course of its achievements with clear goals, the most important of which is consolidating its position as the capital of the new global economy. The DIFC is keen to continue its influential role at the heart of the Emirati economic landscape, by affirming its location as a major focal point for financial activities in Dubai and the region. ”

His Highness continued: “We are continuing to develop the capabilities of the center, update its regulatory frameworks, and maximize the positive return on its potential by developing initiatives, and plans that serve to establish a role model for the professional work environment, which has all the necessary elements to attract and motivate the best talents, in a manner that supports the goals of the national agenda of the UAE and (Dubai Plan 2021) ».

His Highness added: «There is no doubt that ensuring the financial future enhances the psychological stability of employees, gives them confidence and encourages them to distinguish, and the Dubai International Financial Center today includes more than 24 thousand employees, and our goal is to provide them with all the appropriate conditions that enable them to start their business in an atmosphere in which they enjoy With a sense of reassurance, and help them achieve the highest levels of trust, on both the professional and personal levels, reflecting the place Dubai has long enjoyed as the best place to live and work in the world. ”

Innovative initiative

The initiative, which is to be launched in the Dubai International Financial Center, starting from the first of next February, represents an innovative plan aimed at restructuring the current system of end-of-service benefits and bonuses, into a specialized and funded savings plan that is based on the payment of specific contributions.

The initiative provides employees with the opportunity to make voluntary contributions, which allows all employees in the Dubai International Financial Center to plan and secure their financial future with ease.

Investment platform

The employee savings plan in the workplace will provide a low-cost investment platform to collect and manage the mandatory end-of-service contributions that employers make on behalf of their employees, along with other additional optional savings that employees initiate, including cash options or the like, especially for those Members who do not wish to use their contributions for any investment risks.

Benefits for workers

The DIFC intends to support the capacity of more than 2,300 companies operating within it, to attract and retain the most prominent and efficient professionals from the region and the world, by providing employees with the ability to obtain returns from their savings, through a structured and reliable plan.

All companies based in the Dubai International Financial Center will benefit from a continuous set of directives regarding their responsibilities towards their employees, as well as a guarantee that no other financial obligations will be imposed once these contributions are paid.

In addition to the ability to combine voluntary savings with employer contributions, in order to ensure long-term savings goals are achieved, employees will have the flexibility and ability to choose ways to manage their savings, in proportion to the level of risk they prefer, including options consistent with Islamic law.

Employees will be more certain than the level of cash flows, when their end-of-service benefits are distributed over the length of their service with the employer, rather than just the end period. The savings plan will protect employees in the event of financial failures of enterprises, or stop working.

Increase returns

Moreover, the Governor of the Dubai International Financial Center, Issa Kazim said: “The employee savings plan in the workplace confirms our full commitment to provide 24 thousand professionals from the center with the ability to make informed choices regarding their financial affairs, which will lead to strengthening levels of Protection and increase the returns that they will receive at the end of their service or retirement from work ».

He added: “From our location in the heart of the Dubai neighborhood for the future, we announce our commitment to enhancing the global business environment provided by the center, while the forward-looking laws and regulations that it applies contribute to reshaping the future of the financial sector, while we continue to work to achieve our 2024 growth strategy.” .

Kazem continued: “We are working to unlock the growth potential of the Dubai International Financial Center, through the anticipated expansion plan, so that the employee savings plan in the workplace will help us to ensure that the most prominent and most talented global talent is attracted to the financial center, which gives business professionals ease Reaching the Middle East, Africa and South Asia, through this dynamic center fully in line with global best practices. ”

Maktoum bin Mohammed:

"Dubai is on the verge of a new stage with clear goals, the most important of which is consolidating its position as the capital of the new economy."

2300

A company that the Dubai Financial Center seeks to support through the plan.

The plan guarantees long-term savings with all the specialized cadres working in Dubai International Financial.

"The employee savings plan in the workplace guarantees protection to employees in cases of financial failure of enterprises, or stops them from work."

“Staff savings plan is an investment platform for collecting and managing mandatory end-of-service contributions, which employers pay on behalf of their employees.”

Contributions and costs

The employee savings plan in the workplace is designed to be cost-effective for both employers and employees. The plan does not involve the payment of any fees for joining or leaving it for the employers associated with its management. While an annual management fee will be applied to employees ranging between 1.26 and 1.33%, based on the characteristics of the investment risks that they define, which covers the costs of services provided by the “Chief Secretary”, the plan’s managing body, the investment advisor, and other costs involved in the plan, without Any other fees apply at all.

Independent supervisory board

The employee savings plan in the workplace is subject to a great deal of regulatory transparency, through the supervisory board, which was established by the head of the center.

The board consists of representatives of the authority of the center, a representative of each of the companies and employees working, and an independent president who oversees the continuity of governance and commercial aspects not subject to regulatory oversight of the plan.

The supervisory board ensures that the interests of employees and employers are protected.

Join the plan

Amendments to Employment Law No. (4) of 2020 for the Dubai International Financial Center (DIFC), issued recently, replace the end-of-service gratuity system in effect since the establishment of the center in 2004.

Under these amendments, companies based in the center have a period extending through March 31, 2020 to join the qualification plan, which is the best plan in its category ever, to join the employee savings plan in the workplace.

Plan partners: commitment and exceptional levels

Issa Kazem. Emirates today

Dubai International Financial Center (DIFC) Governor, Issa Kazim, affirmed that the partners of the new plan enjoy a world-class reputation, dating back more than seven decades ago. All of them have always shown exceptional levels of potential and commitment while in the Emirates.

Dubai International Financial was keen on selecting an award-winning elite expert organization, to be the main service provider for the employee savings plan in the workplace, after an extensive and in-depth selection process that prioritized institutions with a proven and proven global record and a presence in the center.

Accordingly, Equium, the global provider of professional services, will serve as the chief trustee of the employee savings plan in the workplace, and the independent legal owner of employer contributions, as well as ensuring its employee benefit.

Zurich Middle East and Zurich Workplace Solutions, its operating arm in the Dubai International Financial Center, will provide the full support to employers and employees through managing and managing employee savings plan matters in the workplace.

As for "Mercer Investment Services", it will develop a proven and proven investment process in the interest of the chief secretary of the plan.

Employer contribution

Employers are required to pay a contribution of at least 5.83% of the basic salary of employees whose service period does not exceed five years. While the minimum contribution increases to 8.33% of the basic salary for employees who have five years or more of service.

The plan also gives employees an opportunity to make additional optional contributions by deducting the salary, which contributes to finding more opportunities to raise the value of savings to meet future financial goals, and voluntary contributions can be made on a regular or one-time basis, and is deducted from the employee's salary.

Employers wishing to adopt the employee savings plan in the workplace must implement the qualification plan and submit it to the Dubai International Financial Center authority to obtain a certificate of compliance.