In a landmark move towards enhancing employee benefits, the United Arab Emirates (UAE) authorities have granted approval to two investment companies, Lunate and Daman Investments, to establish end-of-service savings schemes for private sector employees.In a landmark move towards enhancing employee benefits, the United Arab Emirates (UAE) authorities have granted approval to two investment companies, Lunate and Daman Investments, to establish end-of-service savings schemes for private sector employees. The Voluntary Alternative End-of-Service Benefits Scheme (Savings Scheme), which was jointly approved by the Ministry of Human Resources and Emiratisation (MoHRE) and the Securities and Commodities Authority (SCA), enables employees to voluntarily invest their end-of-service benefits in recognized investment funds. This innovative scheme aims to provide employees with additional financial security and stability by generating returns on their savings after the conclusion of their employment. Lunate and Daman Investments were meticulously evaluated and found to meet the rigorous legal requirements, standards, and conditions set forth by the authorities. This authorization empowers them to enter into agreements with employers and facilitate voluntary subscriptions from employees, ensuring strict adherence to the established guidelines. Under the Savings Scheme, employers can register their employees by directly contacting Lunate or Daman Investments. Additionally, the MoHRE has dedicated a comprehensive page on its website that provides detailed information on authorized savings funds and the registration process. The UAE authorities emphasized the significance of the Savings Scheme in safeguarding employee rights and providing their families with financial stability. Through the secure investment of their savings, employees can reap the benefits of investment returns, further enhancing their financial well-being upon the completion of their employment. The announcement of the first accredited investment funds under the Voluntary Alternative End-of-Service Benefits Scheme was met with positive reactions. The joint statement issued by the MoHRE and the SCA highlighted the scheme’s potential to empower employees and foster financial security within the UAE’s private sector. In a tweet, the MoHRE_UAE officially announced the accreditation of Lunate and Daman Investments, emphasizing the thorough evaluation process conducted by the joint committee comprising the Ministry and the SCA. The tweet also included an embedded image summarizing the key details of the scheme.
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The UAE authorities have approved two investment companies to provide end-of-service savings schemes for private sector employees.
Lunate and Daman Investments are the first companies to be allowed to launch savings funds under the country’s Voluntary Alternative End-of-Service Benefits Scheme.
Their applications were approved by the Ministry of Human Resources and Emiratisation (MoHRE) and the Securities and Commodities Authority (SCA) after it was determined that they met the legal requirements, standards and conditions.
This authorization also gives the two companies the ability to enter into agreements with employers and accept voluntary subscriptions, in accordance with a strict set of standards.
Under the Savings Scheme, employees’ pension benefits are invested in recognised investment funds at the end of their employment. As a result, they receive a return after their employment ends.
In a joint statement, the Ministry of Health and the SCA said: “The savings system ensures that employees benefit from the investment of their year-end bonus. This generates additional financial gain through the safe investment of their savings. This helps guarantee their rights and provides stability for their families.”
Companies can register their employees in the savings program by contacting Lunate or Daman Investments directly. The MoHRE has also created a special page on its website with details of authorized savings funds and registration processes.
We announce that Lunate and Daman Investments have been accredited as the first investment funds authorised under the Voluntary Alternative End-of-Service Benefits Scheme (Savings Scheme).
After a thorough evaluation by the joint committee consisting of the Ministry and the… photo.twitter.com/A5AuLO0FCG
— and the Mohammad Ali (@MOHRE_UAE) July 4, 2024
