More than seven in 10 employees working in the Dubai International Financial Centre are confident of receiving their gratuity payment since enrolling in the DIFC Employee Workplace Savings plan, or Dews, according to a new survey.
Commissioned by Zurich Workplace Solutions, Equiom and Mercer and carried out by market research consultancy Insight Discovery, the study interviewed 1,222 people who work in Dubai’s financial free zone and employees across the rest of the UAE to gauge support for workplace savings reforms.
The confidence in the Dews plan is “notable when comparing the responses of employees in the DIFC with the responses of employees who work elsewhere”, the study said.
“Only 40 per cent of UAE respondents outside the DIFC said they were aware of how their gratuity works and what it means for them. Additionally, around 30 per cent of respondents across the UAE have either only a basic level of awareness about their gratuity or are completely unaware of their gratuity.”
The DIFC was the first entity in the UAE to set up a new gratuity system – a defined end-of-service benefit that all employed residents are entitled to after completing at least one year of service – when it introduced the Dews plan in February last year. The free zone’s employers are required to make monthly contributions of 5.83 per cent or 8.33 per cent of an employee’s wage, depending on their length of service, to a fund administered by a trust.
Employees can also choose to make voluntary contributions to the Dews plan.
Equiom is the master trustee of the Dews programme, Zurich Workplace Solutions the plan administrator and global consultancy Mercer the investment adviser.
“[Dews] presents a viable, and now tried and tested, blueprint for the rest of the UAE – and possibly even the region – to build a culture of long-term financial planning supported by regulated solutions that effectively enable discipline and consistency,” said Chris Cain, client services director for the Middle East at Equiom.
In March, the DIFC said 19,182 employees from 1,187 companies had registered with the Dews plan, which had more than $127 million worth of assets under management as of February 1.
In April, Axa Green Crescent Insurance Company unveiled a workplace savings plan to help UAE employees save for their retirement.
The Employee Secure Saver plan helps companies provide employees with a savings vehicle similar to those available globally, the insurer said at that the time.
The Zurich, Equiom and Mercer survey found that there was a considerable savings gap between non-Emirati and Emirati employees in the UAE, with 45 per cent of non-Emirati respondents saying that they have either no means to maintain a decent standard of living in their retirement or plan to continue working beyond retirement age.
Sixty-one per cent of non-Emirati respondents said they had no long-term savings at all, it said.
“The success of Dews will also hopefully help more expats become aware of the need for planning to start to put in place relevant and suitable financial strategies to support them in retirement, triggered by the benefits of greater certainty in employee-related savings,” said Reena Vivek, senior executive officer at Zurich Workplace Solutions.
A 2020 UAE Security and Savings survey by Mercer also found that a lack of financial awareness was an issue among respondents.
“The opinions of DIFC employees familiar with Dews demonstrates the importance of the scheme in focusing individual employees on the need to save for their future by offering flexible and attractive investment options able to meet the requirements of individual employees and their savings goals,” said Claudia Maldonado, DC solutions leader at Mercer Middle East.
The lowdown
Badla
Rating: 2.5/5
Produced by: Red Chillies, Azure Entertainment
Director: Sujoy Ghosh
Cast: Amitabh Bachchan, Taapsee Pannu, Amrita Singh, Tony Luke
The%20specs
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UAE currency: the story behind the money in your pockets
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
COMPANY%20PROFILE
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The team
Videographer: Jear Velasquez
Photography: Romeo Perez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Models: Meti and Clinton at MMG
Video assistant: Zanong Maget
Social media: Fatima Al Mahmoud
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