Dubai International Financial Centre has revealed final details ahead of the launch of its new DIFC Employee Workplace Savings Plan (Dews) for its 24,000 employees.
Taking effect from 1 February 2020, the defined contribution savings plan, which will be managed by a panel of expert key service providers, replaces the current defined benefit end of service gratuity scheme.
Global professional services provider, Equiom, will act as master trustee of Dews and the independent legal owner of contributions made by employers, while ensuring the beneficial interest lies with employees.
Zurich Middle East and its DIFC-entity Zurich Workplace Solutions will give support to employers and employees through the administration and management of Dews.
Investment services provider, Mercer, will bring an independent investment process to the master trustee of Dews.
The scheme does not apply any entry or exit charges to employers associated with its administration, while employees will only be subject to an annual management charge of between 1.26 and 1.33%, the DIFC added in the statement on 21 January.
Greater financial security
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, deputy ruler of Dubai and president of Dubai International Financial Centre said: “The launch of Dews is part of our efforts to put in place a supportive environment for talent by creating greater financial security for employees of DIFC-based companies.”
Essa Kazim, governor of DIFC, added: “Each Dews partner has a solid international reputation that collectively dates back more than 70 years and they have consistently demonstrated exceptional capabilities and commitment to the UAE.”
The recent enactment of the DIFC Employment Law Amendment Law No. 4 of 2020, replaces the current end-of-service gratuity payment regime that has been in place since the inception of the DIFC in 2004.
As part of the amendment, DIFC-based employers will have until 31 March 2020 to enroll into a Qualifying Scheme.
