A pension plan for expatriates is being discussed at the federal level, claims a senior government official. "As far as we know the issue is now being handled at the federal level," the official told Emirates 24|7 on condition of anonymity.
The pension fund for expatriate employees is one of the important projects included in the strategic plan of the department because it would increase productivity and contribute to employees' stability, he had said. Under UAE Labour Law, companies have to provide end of service gratuity to employees who have completed one or more years of service.
The end of service gratuity scheme was introduced 40 years ago to ensure that when employment relationships were terminated, employees without pension benefits received a lump sum payment to assist them during the period following termination or for them to put towards their savings, Al Tamimi & Co law firm wrote in a report titled, 'The End of Service Gratuity: Is it the beginning of the end?' Employees with at least 12 months service are entitled to 21 calendar days' salary for each year of service in the first five years of employment and 30 calendar days' salary for each year of service worked beyond five years, the law firm said.
UAE nationals working in the public and private sectors already have a pension plan in place.
Source: Gulf News
|UAE National Day holidays: 5-day break for public sector|
Saturday, 8th November 2014
On the occasion of the UAE's National Day, all ministries and federal departments in the country are to be closed from Tuesday, December 2, 2014 to Thursday, December 4, 2014, with work resuming...
|Nine things to know about UAE labor laws|
Tuesday, 4th November 2014
Employment issues in the UAE have certain unique characteristics reflective of the country's social fabric, cultural values and economic considerations. It is, therefore, imperative that foreign...