Procedures for subscribing to the voluntary savings system for employees in the Emirates
The Ministry of Human Resources and Emiratisation in the United Arab Emirates has determined the procedures for subscribing to the voluntary savings system for employees, an alternative to the end-of-service reward system in the Emirates.
The steps that need to be taken in order for employees in the Emirates to sign up for the voluntary savings scheme
The Ministry of Human Resources and Emiratisation in the United Arab Emirates has established the protocols that must be followed in order for employees to subscribe to the voluntary savings system. This system is an alternative to the end-of-service incentive system that is already in place in the Emirates.
Procedures for submitting an application to participate in the optional savings system as an alternative to the end-of-service reward
Detailed instructions for filing an application to take part in the supplementary savings program as an alternative to the traditional end-of-service incentive are provided here, An employer who wishes to participate in the "savings system" can submit a request to the Ministry through the service provision channels, choose one of the licensed investment funds, and pay the subscription for the workers he wishes to register in the system, all while allowing the workers to keep their entitlements from the previous period.
When does subscription to the end-of-service reward system in the Emirates be stopped?
When will the option to subscribe to the end-of-service reward system in the Emirates no longer be available? In this scenario, the traditional end-of-service reward system that is specified in the Law Regulating Labor Relations for registered workers will be suspended, and the amounts that are owed to each worker will be calculated for his years of experience in accordance with the Law Regulating Labor Relations until the date of his joining the savings system, provided that his entitlements are calculated according to the new system from the date of his registration in it, and all dues (previous acquittals) will be paid according to the new system
Features of the optional savings system as an alternative to the end-of-service reward for workers in the Emirates
The characteristics of the savings plan that employees in the Emirates might choose to participate in instead of receiving a bonus at the end of their employment, The worker has the right to withdraw part or all of the amounts or investment returns, subject to the terms and conditions of the system. The maximum amount that can be withdrawn is 25% of the worker's annual gross salary. The worker has the right to voluntarily pay the additional contribution to increase and develop his savings and investment returns, within the limits of 25% of his annual gross salary. The approach gives the skilled worker the ability to select whatever form of work they see fit. His choices for investment portfolios are used to determine the types of investment possibilities that are made available within the system, whereas the unskilled worker is only included in the capital guarantee portfolio.