UAE has announced a major end-of-service investment scheme for employees across the country. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, chaired the UAE Cabinet meeting at Qasr Al Watan, Abu Dhabi and announced this scheme for those working in the UAE.
During the meeting, the government approved an optional system for end-of-service gratuities for private sector and free zones employees. It is optional for employers to join and includes establishing private sector investments and savings funds supervised by the Securities and Commodities Authority in coordination with the Ministry of Human Resources and Emiratisation.
His Highness Sheikh Mohammed shared this update on Twitter and said that through these funds, employees can invest and save their end-of-service gratuities according to various investment options. To safeguard workers' savings and to ensure that they are safely invested to guarantee their rights and achieve the stability of their families, this scheme is launched by the government. Government sector employees can also participate for savings and investment purposes.
According to WAM, the Ministry of Human Resources and Emiratisation, in coordination with the Securities and Commodities Authority, will supervise the system and its funds all over the Emirates. It includes three main investment options for employees:
- Risk-free investment that maintains capital
- Risk-based investment where the risk varies between low, medium and high
- Sharia-compliant investment