United Arab Emirates: Savings Scheme Forthcoming for Foreign Nationals Employed in Dubai Public Sector
June 16, 2022
Effective July 2022, the Dubai International Financial Center (DIFC) will implement an employee savings scheme for foreign nationals working in Dubai’s public sector. This is an extension of UAE’s current gratuity scheme and eligible foreign nationals will be automatically registered, except foreign nationals working in the private sector or under a temporary contract. Under this scheme, the employer will contribute toward the total end-of-service gratuity, which is due to the employee into the savings scheme starting on the date the foreign nationals joined the company. Afterward, employees may contribute any preferred amount until the end of their employment within the public sector. Employers in the public sector should notify and provide updates to their respective employees regarding this system whereas private sector employers are advised to stay up to date on their potential inclusion within this system. The aim of this scheme is aligned with the UAE national vision to safeguard the rights of employees and to create a competitive labor market.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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