MoHRE Conducts Workshops To Promote Savings Scheme Benefits For Private Sector Employees

The Ministry of Human Resources and Emiratisation (MoHRE) recently held six workshops to promote the 'Savings Scheme'. This voluntary system offers an alternative to traditional end-of-service benefits for private sector employees. The workshops aimed to educate employers on the registration process through savings funds approved by MoHRE and the Securities and Commodities Authority (SCA).

Approximately 500 employers and company representatives attended these sessions. MoHRE collaborated with accredited savings funds such as Lunate Capital, First Abu Dhabi Bank, Daman Investments, and National Bonds Corporation. These institutions are known for their expertise in managing investment funds, ensuring the scheme's effective implementation.

The Savings Scheme aims to invest employees' end-of-service gratuity in leading investment funds. This approach helps grow their savings, promoting financial sustainability for private sector workers. It allows employees to plan with greater stability while supporting business operations.

During the workshops, various investment options were discussed. These included the Capital Guarantee Portfolio, Risk-Based Investment Options, and a Shari'a-Compliant Fund. Each option was explained in detail to meet diverse employee needs.

The Ministry encouraged private sector companies to join the Savings Scheme. Benefits include enhanced employee entitlements, improved job stability, reduced employer costs, and a strengthened financial sector in the UAE.

Ahmed Al Yassi, Acting Assistant Under-Secretary for Labour Protection at MoHRE, stated: "Organising these workshops aligns with the Ministry's comprehensive approach to fostering sustainable partnerships in the labour market to achieve government policy objectives and ministerial decisions, reinforcing the UAE’s global leadership in labour market practices."

Flexibility for Workers

Workers can make optional contributions up to 25% of their salary within this voluntary framework. They can withdraw part or all of their savings or investment returns according to scheme terms.

If a worker changes jobs, they can either withdraw their accrued amount or leave it invested. The new employer may continue contributions or choose a different fund manager.

Participation Beyond Private Sector

The scheme is open to additional categories interested in its benefits. These include independent business owners, freelance permit holders, non-citizen government employees, and Emirati workers in both sectors. Participation requires continued employer subscriptions for UAE nationals in pension systems.

Skilled workers have freedom in choosing investment options based on preferences. Unskilled workers are limited to the Capital Guarantee Portfolio.

The Ministry provides detailed information about accredited investment funds on its website www.mohre.gov.ae. This includes updates on the 'Savings Scheme' for private sector workers.

With inputs from WAM