Dubai: Dubai International Financial Centre (DIFC) said on Tuesday its latest law on employee savings plans will provide protection to workers in cases when companies enter into administration or go out of business.

In a statement to announce the final details ahead of the launch of the new scheme on February 1, DIFC said the plan will help secure the financial future of over 24,000 employees based at the Centre. It does so by replacing the end-of-service gratuity with a workplace savings plan that will put that money into a managed fund instead.

The DIFC Employee Workplace Savings (Dews) plan will give employees the option to make voluntary savings, by adding money into the fund. Employees who do not want to take investment risks can opt to put in savings in cash or cash equivalent options.

DIFC said the savings plan will allow employees to earn returns on their savings, and will thus help the Centre attract more talent.

Under Dews, employers will be required to make a minimum contribution of 5.83 per cent of an employee’s basic salary with less than five years’ service. The minimum contribution increases to 8.33 per cent of the basic salary for five years or more of service.