The Ministry of Human Resources and Emiratisation (MOHRE) has unveiled an innovative system for end-of-service gratuity, led by Minister Abdulrahman Al Awar. This initiative offers a unique approach for workers in the country, providing a distinct investment opportunity for their gratuity.
Under the supervision of the Securities and Commodities Authority in collaboration with MOHRE, a dedicated private sector investments and savings fund will be established. This alternative gratuity scheme enables eligible employees to invest in various savings plans, promoting financial growth and stability.
The program encompasses three distinct investment options, as announced by the UAE Government Media Office:
1. Risk-Free Investment: Maintaining the principal capital.
2. Risk-Based Investment: Offering variations in risk, categorized as low, medium, and high.
3. Sharia-Compliant Investment: Aligning with Sharia principles.
Participation in this optional system is open to all employees within the private sector and free zones, regardless of their occupation or work patterns. Moreover, government sector employees are eligible to join the scheme for savings and investment purposes, as stated by the UAE Government Media Office.
Employers interested in enrolling in the initiative should contact the Ministry of Human Resources and Emiratisation (MOHRE) or the Securities and Commodities Authority. By registering for the scheme, employers can specify the employees who will be part of this program. Once enrolled, employees gain the flexibility to withdraw part or all of their voluntary contributions alongside investment returns.
Upon signing up for the scheme, employers have the autonomy to select the investment fund and finalize the subscription contract, designating the fund administrator. The establishment staff's participation and registration in the scheme will be handled by the fund administrator, facilitating the opening of savings accounts for beneficiaries.
Following registration, the employer commits to transferring a voluntary monthly contribution from the beneficiary's salary to the fund. Employers can also opt for a lump sum transfer directly into the scheme for enhanced convenience and financial planning for employees.