The Ministry of Human Resources and Emiratisation (MoHRE) recently conducted six workshops to raise awareness about the "Savings Scheme", a voluntary alternative to end-of-service benefits for private sector employees. Over the past two weeks, around 500 employers and company representatives attended these sessions.
Launched in collaboration with Lunate Capital, First Abu Dhabi Bank, Daman Investments, and National Bonds Corporation, the scheme enables employees to grow their end-of-service gratuity through leading investment funds, ensuring long-term financial stability. These accredited financial institutions play a crucial role in managing funds and ensuring the scheme’s effective implementation.
Empowering Financial Security
Ahmed Al Yassi, Acting Assistant Under-Secretary for Labour Protection at MoHRE, highlighted that the workshops align with the Ministry’s mission to foster sustainable labour market partnerships and strengthen the UAE’s global leadership in employment practices.
The Savings Scheme allows private sector companies to register employees and invest their gratuity funds in various accredited portfolios. Employees can also contribute up to 25% of their salary to enhance their savings.
Diverse Investment Options
The scheme offers various investment choices, including:
- Risk-based portfolios
- Shari’a-compliant funds
- Capital Guarantee Portfolio (mandatory for unskilled workers)
- Flexible investment options for skilled workers
This initiative provides employees with greater financial security, reinforcing MoHRE’s commitment to enhancing labour market practices in the UAE.
News Source: Emirates News Agency
