The Ministry of Human Resources and Emiratisation (MoHRE) has conducted six workshops in the past two weeks to enhance awareness of the benefits offered by the ‘Savings Scheme’, the voluntary alternative end-of-service benefits system for private sector workers, and the mechanism for registering in the system through savings funds approved by MoHRE and the Securities and Commodities Authority (SCA).

Approximately 500 employers and representatives from various companies participated in the workshops, which MoHRE organised in collaboration with accredited savings funds, including Lunate Capital, First Abu Dhabi Bank, Daman Investments, and National Bonds Corporation. These financial institutions, with their strong reputation and extensive experience in managing investment funds, ensure the effective implementation of the Savings Scheme, providing reliable financial benefits and improving the financial well-being of employees.

The Savings Scheme seeks to invest the funds allocated for employees' end-of-service gratuity and grow their savings through leading, accredited investment funds. This promotes financial sustainability for private sector employees, enabling them to plan ahead with greater stability while facilitating business operations.

His Excellency Ahmed Al Yassi, Acting Assistant Undersecretary for Labour Protection at MoHRE said: "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.”

The Ministry urged private sector companies to enroll in the Savings Scheme and take advantage of the benefits it offers to both employers and employees, including enhancing employee entitlements and job stability, reducing costs for employers, and strengthening the financial and investment sector in the UAE.

The workshops provided a detailed explanation of the mechanisms and benefits of subscribing to the Savings Scheme, highlighting key aspects such as the advantages offered by accredited investment funds. 
The workshops also reviewed various investment options, including the Capital Guarantee Portfolio, Risk-Based Investment Options, and the Shari'a-Compliant Fund. Each portfolio and its corresponding investment options were explained in detail to accommodate the diverse needs of different segments of employees.

Companies wishing to participate in the Savings Scheme can choose one of the accredited investment funds and pay the subscription for the workers they wish to register in the Scheme, with the possibility of retaining their dues for the period preceding subscription.

The worker also has the right to make optional additional contributions to enhance and grow their savings and investment returns, which can be up to 25% of their total salary within the voluntary subscription framework. Furthermore, the worker is entitled to withdraw part or all of the amounts or investment returns, in accordance with the terms and conditions of the scheme.

When a worker transitions from their current employer to a new one, they may either withdraw the accrued amount from the fund contributed by the current employer or choose to keep it in the fund to continue investing, with the option to access it at any time. The new employer may assume responsibility for the previous employer’s contributions to the same fund after establishing a contract with the fund. Alternatively, the new employer may register the worker with a different fund manager and cover the associated contribution fees.

The Savings Scheme also provides skilled workers the freedom to choose from any of the available investment options based on their preferences, while unskilled workers can only be enrolled in the Capital Guarantee Portfolio.

The Scheme allows optional participation for additional categories based on their interest in benefiting from its advantages. These include independent business owners, holders of freelance work permits, non-citizen employees working in government entities and affiliated establishments, as well as Emirati employees in both the public and private sectors. The individuals can register in the Savings Scheme by making additional voluntary contributions, enabling them to save, invest, and grow their savings in a secure manner. This participation is contingent upon the continued payment of subscriptions by employers on behalf of UAE nationals in pension and social security systems.

The Ministry of Human Resources and Emiratisation provides comprehensive, regularly updated information on accredited investment funds on its website, www.mohre.gov.ae, along with details about the voluntary alternative end-of-service benefits system, the 'Savings Scheme,' for private sector workers.