Saturday, 6 July 2019

Pension fund for UAE expats: Necessaries to provide pension.

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Last updated on July 6, 2019 at 6:30 pm

Pension for expats is particularly important in the case of UAE because around 90 percent of the workers are expats. Said by Lawyer Barney Almazar, director of Gulf Law. Pension, health insurance, retirement benefits and gratuity all are compensating employees after several years of service they provide for United Arab Emirates. Present labour legislations are going through the mandatory end-of-service benefit which is called as EOSB in short. As per recognizing experts said pension fund will ensure non stoppable benefits for retiring employees.

UAE government has announced that the end-of-service gratuity scheme will be improved.
There is no secured source of income for expats after retirement but in his or her own country the employer is directed to contribute to one of the social security services. Prefunding is the method he point out to find a solution for this is company and employee both can contribute share to the retirement fund along with including post-employment healthcare coverage.

He also said that employers can share graduated contribution during the working years of employees and it can collected to a trust fund, and employees can access to the fund after their retirement.  
Dr Abdulrahman Abdulmanan Al Awar, who is the director-general of Federal Authority for Government Human Resources which is called as FAHR in short said that “Employees several years of contribution and services to the country will led to excellent opportunity and will be important need in region to establish investments fund to control and manage retirement and end-of-service benefits for the expats.

Article 141 of the UAE labour law allows the employer to maintain pension scheme. This can be covered by the companies which provide pension, in lieu of the modern EOSB which is granted by Article 132.

So expat employees must protect their future by knowing this pension and end-of-service scheme by UAE government.

 

Source from Khaleej Times,

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