DTC takes the lead in driving pension reforms, signing up with National Bonds. Image Credit: Shutterstock

Dubai: Over 9,000 drivers with Dubai Taxi Corporation (DTC) have signed up to the Golden Pension scheme from National Bonds, whereby they can start with monthly contributions from Dh100.

The employees can earn a profit on the amount saved, which can be availed in addition to the gratuity provided by DTC. The scheme supports ‘organizations with their employee retention efforts as well as help them plan ahead for the end-of-service financials’.

DTC thus becomes the first entity to join the ‘Golden Retirement Program’.

The National Bonds’ initiative represents a major push into creating a wide and vibrant pension system in the UAE. Launched last year, it creates a platform for expat and UAE National employees to set aside periodic savings for their future. Over and above what they would get as gratuity.

They will also be part of the National Bonds’ rewards program of Dh35 million and eligible for a life takaful cover provided by local takaful Operators.

Mohammed Qasim Al Ali, National Bonds Group CEO, said: "Retirement planning is vitally crucial to ensure the stability and financial independence of individuals. The UAE now has a population of around 9 million people. We hope to enable residents to invest in their futures while also supporting businesses through this smart first-of-its-kind staff retention program."

Through National Bonds’ mobile app, employees will have visibility to their pension portfolio and can view their individual savings in real0time. "The scheme enables companies to invest in their employees’ end-of-service funds so that they can benefit from additional returns on their gratuity,” the National Bonds’ CEO added. “Not many companies do this as accumulated funds are not being invested, which ultimately deprives the employees of these benefits.”