Expat pension plan under study

Abu Dhabi: Expatriates are likely to be brought under the national pension scheme, according to a government plan.

A proposed "Pension Savings" draft law is being studied by the General Authority for Pensions and Social Insurance (GAPSI), and aims to include all expatriates working in the public and private sectors, a senior official said yesterday.

At present, pensions in the private sector are provided through an end-of-service payment (gratuity) relative to the employee's length of service calculated on the basis of basic salary.

"The law is still being studied, and we expect the studies to conclude by the end of April, and that will be followed by receiving the necessary initial approvals," Abdul Rahman Al Baqer, GAPSI's deputy director, told Gulf News.

Raft of proposals

"The proposal covers all expats in the country's public or private sectors, and I want to make it clear that this endeavour was not commissioned or directed by the government ... it comes as an initiative from the authority itself according to the outline set by the leadership, within the framework of our strategy to include all those working in the UAE in the pensions scheme," Al Baqer said.

The study includes various pension proposals and mechanisms to implement it. "We are not consulting businessmen or companies over the proposed legislation," Al Baqer said.

As per the proposed legislation, the pension amount will be collected by an entity other than the companies of the employees, through monthly subscriptions to be cut from their salaries in favour of their respective accounts with GAPSI.

Your say
Do you welcome this move? Should it be optional? Will it help expatriates or become too tough for people earning below a certain salary scale? Tell us at letter2editor@gulfnews.com

This is a good news for all expats working here in the UAE. I hope the study will work on as a provision/act the soonest possible time.
Teresa
Abu Dhabi,UAE
Posted: March 27, 2008, 09:45

This is a great initiative. I would definitely like to be a part of it.
Cmd
dubai,uae
Posted: March 27, 2008, 09:37

Yes, I very much appreciate this move to include the expats in the pension schemes.
Mohammed
Dubai,U.A.E.
Posted: March 27, 2008, 09:34

If well managed and invested it offers a good savings scheme for the employee ensuring secured exit upon leaving service. Employees can use their savings as collateral for accessing Bank Loans. Thumbs up for the Idea!!!
Gilbert
Dubai,UAE
Posted: March 27, 2008, 09:28

It should be optional! I moved here from the United States to avoid these types of mandated Government programs. Please don't let Dubai follow in US footsteps!
Erik
Dubai Marina,UAE
Posted: March 27, 2008, 09:27

It will not help below average income people.This move will tighten their life.
Semeer
Dubai,UAE
Posted: March 27, 2008, 09:21

It would be a good move in my opinion. To begin with, it should be optional because of the cost of living expenditure which is increasing day-by-day. To survive here with the income we normally get is very difficult and at the same time if we have this option of pension plan, it would definitely work for the people who has better opportunities to save something and in turn move towards the pension plan. Good for those who can save something, but contrary for others who hardly could save something. Thanks, Ashfaq
Ashfaq
Hyderabad,India
Posted: March 27, 2008, 09:17

Pension is a steady income given to a person (usually after retirement). And everyone knows that an expat can't stay without a job, so how will he recieve his/her pension?
Salman
dubai,UAE
Posted: March 27, 2008, 09:12

What worries me about this move is how much would be left on the salary of those who are earning just less than AED 1,000? With the increasing prices of the basic commodities and accommodation rents, I don't think this is feasible. I think it would be better if companies shouldered this subscription instead of cutting on the employees's salary. In this manner, it would be easier for the employees to claim their end of service benefits.
paul
dubai,uae
Posted: March 27, 2008, 09:12

It is a great move which will help everyone have something to go back with to their homes at the end of the day. If it is unfavourable to some,then it calls for a move by the authority to revise the imbalanced salary scheme to make it practicable. But yet we are humans, and unappreciative of such a positive move, will find loopholes in it.
musa
Abu dhabi,UAE
Posted: March 27, 2008, 09:12

I believe the new pension scheme should be implemented soon. This will help an employee to have some financial savings by the end of his service to live a peaceful life after his retirement.
.Jayaram
Abu Dhabi,UAE
Posted: March 27, 2008, 09:11

Well this rule is excellent to implement but this should be optional for every one because many persons are living hardly and facing difficulties to meet their daily expenses and we should also consider the rising tendency of rent of accommodation. Now if anyone get salary after deducting the amount it will be more difficult for him to stay here. Authorities should think about this problem and make this optional or second choice is to increase salary. However this is good choice for those who are earning a good salary.
Zubair
Abu Dhabi,UAE
Posted: March 27, 2008, 09:08

The concept is appreciated. Under the present scheme of end of service award or Gratuity, nothing from the employee salary was deductible, however the draft proposal for GAPSI seems to have a certain deduction from employee salary. With rising costs and practically stagnant salaries, deductions from salary will only increase burden on employees. I hope GAPSI authorities will think of a way of having employer+employee contribution for pension. GAPSI authorities should also look into the fact that the expat employee is only temporary guest in the country and if he/she doesn't hold a job, how will this pension be granted or whether the dictionary term of pension will be implemented in its true form.
Shuaib
Sharjah,UAE
Posted: March 27, 2008, 09:06

Its a good move to intruduce pension scheme and should be compulsory for all establishments in UAE. So benefits can reach employees who work for companies for longer periods.
Saifee
abu dhabi,UAE
Posted: March 27, 2008, 09:03

It is very good and very much supportive move from the authorities to support expatriates. It will of course be beneficial for both expatriates and the authority. There will of course be a lot of issues to tackle such as amount of contribution from employee and employer (if any), what would be minimum number of years to have the pension, how the pension may be provided to the employees upon return to his own country, how the authority can decide whether the employee is alive or dead after departing from the country, will there be a maximum age limit until which the employees may receive pension. Its a good move altogether. It answers a basic question of the expatriates that how will one be able to earn/support himself on return to their own country.
Akbar
Dubai,UAE
Posted: March 27, 2008, 09:02

This plan is long due, thanks to the concerned authorities for looking into this matter. I hope they will implement this plan soon. "Thumps Up"
Syed
Dubai,UAE
Posted: March 27, 2008, 09:01

Really, it is a very good move, old staff might leave and the new might be able to join these vacancies.
Khaleel
Dubai,UAE
Posted: March 27, 2008, 09:00

A great move from the government which will help all people in the nation not only favoring locals but also expatriates that are helping in the overall success of the nation, from the lower income level to the highest. As an additional benefits to be given out of the contribution that will be collected to the people, the government must provide privileges or benefits in the form of loans w/o interest, free hospitalization expenses.
Charlie
Dubai,UAE
Posted: March 27, 2008, 08:58

I think it is very good idea to implement pension scheme in Emirates. My suggesion is whatever amount cut from employee salaries, the same amount must also be taken from employer also to give better benefit for employee in future.
chetan
Abu Dhabi,UAE
Posted: March 27, 2008, 08:57

A good relief providing move from great hearts....but apart from salary, the expats expects a kind contribution from this nation where they spend their long life.
Lawrance
al ain,india
Posted: March 27, 2008, 08:57

If ever implemented this law should definitely be optional. Because a vast majority of Expatriates are earning just enough money to survive and send the rest back home. For some even a small deduction is not affordable.
K.Azam
Sharjah,U.A.W
Posted: March 27, 2008, 08:56

A Great Decision. It will be good if it is life long.
Lalit
Sharjah,UAE
Posted: March 27, 2008, 08:56

A well managed pension plan intended for the future security of people irrespective of their nationality is a very positive step and should be encouraged.
Sam
Dubai,UAE
Posted: March 27, 2008, 08:54

It should be optional. Tt is too tough keeping in mind the growing expenses to survive in this country.
Pooja
Dubai,UAE
Posted: March 27, 2008, 08:54

It is a great move and will be a big peace of mind for expatriates, and their family.GOD Bless UAE and its rulers.
Imtiaz
fujairah,uae
Posted: March 27, 2008, 08:53

Due to high cost of living people are suffering and it is hard to meet both ends. Saving is out of question now. In this situation further cuts from salary is added burden. If the employer is paying atleast for the lower income group, it will be good.
Shihab
Abu Dhabi,UAE
Posted: March 27, 2008, 08:52

Excellent initiative and I hope everyone benefits from this, looking forward towards retirement.
Riyaz
Dubai,U.A.E
Posted: March 27, 2008, 08:47

This is welcome move by the Government will surely add value to expats of this country
Shobha
Abu Dhabi,UAE
Posted: March 27, 2008, 08:46

Pension Plan is a saving for any employee disregarding his salary scale. Both employee and employer should contribute to the Pension Fund based on the salary of employee and Employer contribution should be three times the employee contribution.
Sakeer
Abu Dhabi,UAE
Posted: March 27, 2008, 08:44

This will be a nice move but pension is after retirement...if the UAE government is considering all the expatriates then are they going to provide permamnent residential visa to expatriate who will be joining this venture? As per the system our visa validity is 3 years subject to renewel and there is no job visa for the people above 60 years .....how will the authority deal with this matter?
vikas
dubai,uae
Posted: March 27, 2008, 08:43

This would be another chance for the employer to exploit there employees. They will just cut there salary but at the end the money would go to employers pockets
calito
Dubai,iceland
Posted: March 27, 2008, 08:41

Its very good idea and it if happens it is a valuable gift for expatriates who work in U.A.E, for long years which will help in old age. Congrats
Nagesh
Abu Dhabi,India
Posted: March 27, 2008, 08:40

THE initiate deserves a warm welcome it would be a great help to all expatriates working in the uae. I feel, it would also attract more skilled and professional manpower to meet UAE's work force for ongoing development.
Krishnakumar
DUBAI,UAE
Posted: March 27, 2008, 08:40

The pension scheme is a very good proposal and it will highlight the country's name.
fulton
dubai,UAE
Posted: March 27, 2008, 08:35

I think this is a good move coming from the authorities. This is a good "force savings" as i call it. I just hope that there is no 'string attached' and is completely independent from any other form of entity. I think level of per cent is optional but would set a minimum per cent applicable to all brackets thanks Gerry
gerry
Jafza,Dubai, UAE
Posted: March 27, 2008, 08:26

I think it is very good idea. It will definitely help the expatriates. In addition to their end of service benefits, they will get some more dirhams.
Rafique
Abu Dhabi,U.A.E.
Posted: March 27, 2008, 08:22

I welcome this move infact I can say it is a good move. But the crucial factor is will it be implemented or just a proposal?
mohammed
dubai,uae
Posted: March 27, 2008, 08:21

It's a very very good proposal, actually it should have been started a long long time ago. Any way, I welcome this proposal.
Md.Safiul
AL-AIN,UAE
Posted: March 27, 2008, 08:21

Yes, I welcome this move. but they must also give consideration to expats who earn below salary scale since they are the ones who really need this type of benefit.
cy
dubai,u.a.e.
Posted: March 27, 2008, 08:19

What will happen to the worker's pension money if he is terminated by his company within one or two years of employment and sent back to his home country?
Ahmed
Abu Dhabi,United Arab Emirates
Posted: March 27, 2008, 08:19

Due to the high inflation rate, government should make it mandatory to increase the salary every year and also specify a per cent instead of cutting down from salaries that will make life miserable.
Mohasin
Dubai,U.A.E.
Posted: March 27, 2008, 08:18

This is a good move to protect the rights of working expats.
Wissam
Abu Dhabi,UAE
Posted: March 27, 2008, 08:17

If this comes into effect, it will be a great move and will ensure the safety and security of those working in both private and public entities. Pension provides an added security to the life of an employee and answers a major part of the question as to what comes next.
Subin
Dubai,UAE
Posted: March 27, 2008, 08:16

Yes it is a very good move. But if the government can also become a part of it then it will be very good like contributory pension schemes where the same amount put by the employee is put by the government which can help the low salaried expatriates. For those earning above a particular amount say 6000 AED can alone provide the fund depending on the amount he would like to get the pension. But for low salaried members it is better to keep a particular amount as pension and will be effective in their case.
Dr. Abilash
Dubai,United Arab Emirates
Posted: March 27, 2008, 08:16

The pension scheme should be applied but it should be followed strictly. It should not happened that at the end employer will get the signatures but all money is gone. It must be paid through some come government controlled organisation and must apply even if a person is changing his job.
imtiyaz
abu dhabi,uae
Posted: March 27, 2008, 08:11

It is a good scheme to ensure social security particularly at a time when families are becoming increasingly nuclear.
Bhaskar
Dubai,India
Posted: March 27, 2008, 07:59

This will really help the expat community. But for sure will affect ow income people. It should be an option to select on voluntary choice.
Ashraf
FUJ,UAE
Posted: March 27, 2008, 07:57

Paying an additional amount to the employee always is better for a person not earning a decent salary according to the current inflation. And it shouldn't mix up with end of service benefits.
Varghese
Sharjah,U.A.E.
Posted: March 27, 2008, 07:56

This is an appreciated move!
Sharmindh
Dubai,UAE
Posted: March 27, 2008, 07:53

This is a very apt proposal. It has to be implemented as a social security measure, because by the time an expat leaves the country they will have nothing in their hands. But this move by the government to provide pension for the services rendered by them should be praised aloud.
Peter
Dubai,UAE
Posted: March 27, 2008, 07:53

Wonderful! I think it is great. I would like to know more about the scheme concerning people on fixed term/limited contract typical to the construction industry.
Hussain
Dubai,UAE
Posted: March 27, 2008, 07:50

The decision is very good. If it is implemented it will be very helpful for us, but the amount should be collected from employers not employees.
Mansoor
dubai,UAE
Posted: March 27, 2008, 07:49

I certainly would welcome this move and the program should be implemented and made compulsory in such a way that the employees with low salaries mostly be benefited. Many expatriates sacrifice a lot and leave their family for work. At least they would be able to look for something for a permanent basis as a pension benefit.
Luke
Chicago,USA
Posted: March 27, 2008, 07:48

It is a welcome decision to consider a pension scheme for expatriates.
Nazimudheen
Sharjah,UAE
Posted: March 27, 2008, 07:47

It is great news for me to hear that the government is planning an expat pension plan. It would really help people over here to save a certain amount by contributing to this fund. I would like to know is there any contribution from the employer for this? Is there any interest that will get paid during these period?
Anoop
Dubai,UAE
Posted: March 27, 2008, 07:47

Good news!
Asmat
abu dhabi,uae
Posted: March 27, 2008, 07:45

It should be optional. It is much better if the companies shoulder the amount.
Bernard
dubai,uae
Posted: March 27, 2008, 07:42

The pension system will work when there is long term employment. Sometimes people are forced out of work due to rising costs or kicked out before they retire so the pension system does not make sense.
Felix
dubai,uae
Posted: March 27, 2008, 07:41

Of course, it would be a good initiative as long as the monthly deductions would be a negligible amount. It would also be a good relief to those people who are worried about their future income after leaving UAE.
Mariam
Dubai,UAE
Posted: March 27, 2008, 07:40

I dont think this is necessary and does not serve any purpose.
Avinash
dubai,u.a.e.
Posted: March 27, 2008, 07:37

This will be a very positive move from the U.A.E government. The amount for monthly subscription should be based on individual salary.
Jobi
Dubai,U.A.E
Posted: March 27, 2008, 07:36

This is an excellent move, but should be optional.
John
Dubai,UAE
Posted: March 27, 2008, 07:22

It is a welcome move but a lot has to be clear before employees as well as employers accept it. The first of my concerns is, in case of arbitrary end of contract by an employer, how long will the process of disbursement of pension take. If the employer in this case will press for cancellation of visa and subsequent exit of the employee, this time has to be as short as possible. Or else it should be remitted to the employees home country by the authority. Secondly, the gratuity as of now is employers contribution. Will the employer be made to contribute towards the pension of an employee or will it be entirely from the employees contribution. I think there will be lots of issues like these which will need to be clarified before expats, with already dwindling savings on account of dollar depreciation against their respective currencies, contribute to this kind of fund on thier own accord.
Sanjay
Sharjah,U.A.E.
Posted: March 27, 2008, 07:22

I welcome the move and it should be implemented. And also those earning small salaries should be included and should be shouldered by the private or goverment owned company.
Claude
Dubai,UAE
Posted: March 27, 2008, 07:18

Very good plan. This will make expats feel more secure, stabilise the labour market float and feel humane when they exit from this great nation.
Sridharan
Abu Dhabi,UAE
Posted: March 27, 2008, 07:12

This is a good move. It will secure expats at the later stage when they retire.
T. Vijay
Dubai,UAE
Posted: March 27, 2008, 07:07

The proposed legislation on "pension savings" is a very good scheme for the expats in general. The implementation part becomes more important as any other scheme. The expats can look forward for some income after the retirement once they return to their respective home countries. No doubt, it is a very welcome step and I wish the authority all success in implementing the scheme.
P.T.Vijayan
Sharjah, UAE,U.A.E.
Posted: March 27, 2008, 06:50

Hope this plan will not be an additional burden to the people after the change in cost of living.
Juan
Abu Dhabi,Philippines
Posted: March 27, 2008, 06:46

Even though it will be an other burden on our earnings in the means of cost of living, it is still better when we go back to our country with some more amounts apart from the gratuity.
Anwar
dubai,U.A.E.
Posted: March 27, 2008, 06:42

This move is welcomed, but the burden should not be on the employee as a part of salary.
Shivender
Dubai,UAE
Posted: March 27, 2008, 06:37

It is a good movement and all expatriates will benefit at the old age.
Padmajakshan
dubai,UAE
Posted: March 27, 2008, 06:35

It is a good move, but the companies should be categorized, eg. major companies like etisalat, dubal, banks etc should accept this rule. It will be a big relief for those who spend their youth to glorify this country and then retire at the age when their bodies do not allow them to do more. I welcome this move.
Abdul
Dubai,UAE
Posted: March 27, 2008, 06:29

Yes, it is a good move. It will help expats to have a better tomorrow.
Monalisa
Edmonton,Canada
Posted: March 27, 2008, 06:27

Such a scheme should be optional. I don't need any entity taking MY money for me to fight for at a later date. Maybe they are hoping that a certain number of people never collect!
Markus
abu dhabi,uae
Posted: March 27, 2008, 06:12

Good move by the government. Skilled People(Employee category) would prefer to stay long in this country thus contributing more.
Paul
Dubai,UAE
Posted: March 27, 2008, 05:35