By His Excellency Ayyoob Al Marzooqi, Acting Assistant Undersecretary for Policy and Strategy Affairs
The Alternative End-of-Service Benefits Savings Scheme, recently launched by the Ministry of Human Resources and Emiratisation (MoHRE) in partnership with the Securities and Commodities Authority (SCA), was designed with a vision to complement the existing Unemployment Insurance Scheme and insurance for private-sector workers, forming a notable new addition to the comprehensive framework for employers and employees in the UAE labour market.
The launch of the Savings Scheme, in line with Cabinet Decision No. 96 of 2023, reflects the UAE's commitment to push forward with the development of the legislative infrastructure underpinning its labour market, and to launching innovative initiatives to enhance its competitiveness. This forms part of a wider, holistic government strategy to support ease of doing business, ensure high living standards and wellbeing for workers and employees, and enhance their family stability. It empowers them to grow their benefits and savings, generating additional financial returns by investing through approved investment funds.
With this innovative procedure, the Savings Scheme is a boost to the UAE's strategy of attracting and retaining talent, all the while enhancing the competitiveness of the UAE labour market and reinforcing the Emirates' position as one of the top destinations for living and working. The Scheme provides significant benefits for workers and establishes robust principles for financial sustainability.
Moreover, it plays an effective role in developing the employer's economic impact, supports the country's overall economic system by revitalising the financial sector, maintaining labour market stability, and reducing labour disputes related to end-of-service benefits.
The Savings Scheme enforces an advanced governance system that offers diverse investment options, especially for skilled labour, empowering those interested in investing additional amounts in their investment funds to further increase their financial returns. All of this is administered within a strong and integrated system that meets the requirements of the UAE business environment and offers a robust infrastructure for investment fund service providers.
This, in turn, ensures the safe investment of funds, managed by professional companies capable of making informed and accurate investment decisions to achieve the desired positive outcomes for the financial sector. It also paves the way for a substantial leap in the UAE's development journey, tremendously enhancing the competitiveness of the UAE labour market.