GLOBAL PAYROLL MAGAZINE
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“The development of alternative schemes outside of DEWS may hint at the possibility of the introduction of pension schemes for expatriates in the UAE in the future, which may lead to greater numbers of expats choosing to reside in the country throughout retirement.”
Future Trends The development of alternative
or its trustee or administrator” . The Amendment Law requires employers to accrue ESG for the sanctioned employee until their employment is terminated, or until they are no longer considered to be a Sanctioned Person. The explicit obligation in the Amendment Law to accrue gratuity may provide the sanctioned employee with greater protection in comparison to the DIFC Employment Law. In October 2023, the UAE Cabinet announced the introduction of a voluntary alternative scheme through Cabinet Decision No.96/2022 (the “Cabinet Decision”). The scheme is applicable onshore and in free zones that follow the Federal UAE Labour Law. However, note that it has also been made available to non-Emirati employees working in the public sector. According to the Cabinet Decision, employers can grant employees the option to opt into the voluntary alternative scheme. The scheme operates similarly to DEWS, as it requires employers to make monthly contributions to the employee’s account and releases the benefit to the employee upon termination. Furthermore, employees are also given the opportunity to select from a range of investment options.
schemes outside of DEWS may hint at the possibility of the introduction of pension schemes for expatriates in the UAE in the future, which may lead to greater numbers of expats choosing to reside in the country throughout retirement. This in turn may help the UAE achieve its goal of becoming a popular destination for retirees, as evidenced by its launch of the 5-year retirement visa. The developments in the UAE must also be observed in connection with the growing calls for the introduction of expat pension schemes in the GCC. Answering these calls with modern, simplified solutions like online platforms may grant Gulf countries the opportunity to not only support their expatriate populations and attract new global talent but also gain a competitive edge over other global economic hubs. Conclusion In conclusion, the introduction of DEWS and similar alternative schemes may have significantly transformed the payroll industry within the DIFC and beyond. By requiring monthly contributions, DEWS may assist payroll professionals with managing company
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