Simple information on Dubai's new and mandatory employee workplace savings plan.
Dubai International Finance Centre (DIFC) is replacing its end-of-service gratuity regime with a funded workplace savings scheme. Employees will be automatically enrolled into the mandatory DIFC Employee Workplace Savings (DEWS) Plan unless their employer elects to adopt an alternative, qualifying scheme.
Here’s what you need to know before choosing the best option for you and your workforce:
- No time to lose – Detailed DEWS rules were published in November 2019. Employees must now be enrolled in DEWS, or in an alternative qualifying scheme, on or before 1 February 2020. In future, employers will have a 30-day window each December to opt out of the mandatory scheme and into an acceptable alternative.
- Maximum flexibility – TMF Group has created a scheme that should fulfil the criteria for an alternative qualifying scheme in line with the forthcoming DEWS regulations. Our scheme is designed to fit the needs of employers in many sectors and to accommodate employees in multiple jurisdictions across the UAE and Gulf regions.
- Secure – A key objective for regional regulators is to create secure benefit structures in which scheme assets are separated from employers and so made more secure for employees. This is a fundamental principle of all TMF Group trust-based structures, making them very likely to comply with final DIFC qualifying scheme requirements once they are published.
- Think strategically – Other Gulf jurisdictions are expected to follow DIFC’s lead. A strategic decision now to opt out of DEWS could avoid a future patchwork of mandatory schemes, opening up important reductions in cost and complexity for HR teams, especially when staff are employed in multiple jurisdictions across the region.
- Simplified processes – TMF Group can make life much easier for your company’s HR team and its employees. We can make it easy for your qualifying scheme to navigate the certification process and once your employees are enrolled, all your members will have access to a user-friendly online portal where they can watch their benefits as they grow.
- Employee benefit reforms are sweeping the Gulf. We are ready to help you navigate them and unlock the many strategic opportunities they bring. But you need to act fast.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.