Emiratisation identifies 8 advantages of optional savings as an alternative to end of service rewards
The Ministry of Human Resources and Emiratisation announced that it had identified an optional savings system as an alternative to the end-of-service reward, explaining how to subscribe to this system.
Emiratisation highlights eight benefits associated with the use of voluntary savings as a substitute for end-of-service awards.
An announcement was made by the Ministry of Human Resources and Emiratisation that it has found an alternative to the end-of-service prize in the form of an optional savings system. The announcement included instructions on how to subscribe to this system.
8 advantages of “optional savings” as an alternative to end-of-service benefits
As an alternative to end-of-service benefits, "optional savings" come with eight distinct advantages, The Ministry of Human Resources and Emiratisation has identified eight benefits of the "optional savings" system, which is an alternative to the end-of-service reward. The "optional savings" system is a method by which the amounts that have been designated for the end-of-service reward for employees working in private sector companies are invested in leading investment funds, so that it increases employees' savings to benefit from its investment returns. The Ministry stated in a presentation that I presented it during the press conference that I recently organized, to announce the start of implementation of the new savings system, that it enhances the principle of ease of doing business, and is considered to be a driver in strengthening the country's position as one of the preferred destinations for living and working, in addition to benefiting from the strong infrastructure of investment funds and service providers in the system t. This was announced during the press conference that I recently organized to announce the start of implementation of the new savings system The system also improves the focus on commercial activities, development, and capital building rather than operational matters when it comes to managing and disbursing end-of-service rewards. This results in increased levels of job loyalty among employees as well as increased levels of job satisfaction and productivity on the job. In the medium term, there is a reduction in cost. If the employer chooses to join in the savings system, he will pay an amount that is lower than the price of the end-of-service award that is now offered. The system also offers a variety of savings opportunities for workers to develop their entitlements and savings to ensure sound financial planning and family stability for their families and to benefit from their investment returns. Additionally, the system offers the possibility of increasing the end-of-service reward for the skilled worker in the event that the worker chooses investment portfolios with high returns or by paying an additional subscription if the citizen or resident worker desires the optional subs. The system also offers the possibility of increasing the end-of-service reward for the skilled worker in the event A voluntary (optional) contribution option is provided inside the system, which is one of the advantages. This option adds to enhancing workers' awareness of and ability to plan financially for their own savings, and it offers them the choice to continue making contributions. if they so choose, in the process of investing their benefits after they have left their jobs.
Objectives of the voluntary savings system as an alternative to end-of-service rewards in the Emirates
The objectives of the voluntary savings scheme in the Emirates, which is intended to serve as an alternative to end-of-service awards, The Ministry has stated that there are four goals for the savings system. The first goal is to support the economic system in the UAE and to achieve protection and well-being for the country's workforce. The second goal is to increase individual investment returns for beneficiaries and to allow workers to pay an additional optional contribution. The third goal is to enhance the attractiveness and flexibility of the labor market that supports workers by improving the level of services that are provided to them. The fourth goal is to improve the level of services that are provided to workers.