The Ministry of Human Resources and Emiratization has confirmed the effectiveness and efficiency of the "Savings System" as an alternative to the end-of-service benefits for private sector employees. The system aims to promote the ease of doing business, support the ability of private sector companies to retain and attract talents, and ensure the financial protection of employees and their savings. The Ministry and the Securities and Commodities Authority have approved a list of approved savings funds for the system, after verifying that the institutions operating them meet all the required criteria and conditions. The Ministry has called on private sector companies in the UAE to join the "Savings System" to enhance the welfare of their employees, attract talents, and strengthen their corporate reputation in the UAE labor market, which is witnessing increasing competition. The system allows companies to enhance their status as attractive employers that prioritize the financial security and future of their employees, which in turn boosts employee loyalty and contributes to attracting top talents. The system also enhances employee productivity, enabling them to develop their financial assets and earn returns on their savings through safe and reliable investment opportunities. The cost of the system for companies is lower than the cost of paying end-of-service benefits, as it is calculated based on the employee's basic salary, not their final salary. Companies interested in joining the system can submit their application to the Ministry through the service channels and choose one of the approved investment funds and pay the subscription fees for their employees who want to register in the system. The system allows employees to choose from various investment options, including a mandatory savings fund and optional additional contributions, and they can withdraw their savings or benefits at any time. The system also allows employees to transfer their savings to another savings fund or withdraw them upon changing jobs. The Ministry provides all the necessary information about the approved savings funds and the alternative savings system on its website, www.mohre.gov.ae, which is updated regularly.
https://www.aletihad.ae/news/%D8%A7%D9%84%D8%A5%D9%85%D8%A7%D8%B1%D8%A7%D8%AA/4527820/-%D8%A7%D9%84%D9%85%D9%88%D8%A7%D8%B1%D8%AF-%D8%A7%D9%84%D8%A8%D8%B4%D8%B1%D9%8A%D8%A9-%D9%88%D8%A7%D9%84%D8%AA%D9%88%D8%B7%D9%8A%D9%86--%D8%AA%D8%AF%D8%B9%D9%88-%D8%A3%D8%B5%D8%AD%D8%A7%D8%A8-%D8%A7%D9%84%D8%B9%D9%85%D9%84-%D8%A5%D9%84%D9%89-%D8%A7%D9%84%D8%A7%D8%B4%D8%AA%D8%B1%D8%A7%D9%83-%D9%81%D9%8A