Workplace Savings plan likely to roll out across UAE

Government in discussions to rethink end-of-service gratuity plans

Pension funds could do small business space some favours — The UAE's gratuity scheme could be in for a major overhaul as authorities weigh short-term necessities with longer term planning. Image is for illustrative purposes only. Image Credit: Supplied

Dubai: The upcoming implementation of a Workplace Savings Plan at Dubai International Finance Centre has prompted speculation that the plan will later be rolled out across the UAE. Mercer, the consultancy that is serving as the investment adviser to DIFC on the plan has said there are “ambitions” to roll out the plan - which will replace the end-of-service gratuity scheme - elsewhere in the UAE.

Claudia Maldonado, principal at Mercer Middle East, said the Dubai government has indicated its interest in expanding the plan to other employers.

“We know that the federal government has started round-table for discussions to re-look at the end-of-service and how it can be adapted to today’s times and today’s community within the UAE,” she said.

Mercer said that, globally, employers tend to use either pension plans or savings plans for their employees, and the UAE is interested in updating its scheme to keep up with international measures.