Gratuity in UAE: Over 80% staff open to employers investing their end-of-service benefits, survey finds

Employees in the country who spend one year or more in continuous service are entitled to this retirement benefit

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A Staff Reporter

Published: Wed 23 Aug 2023, 2:14 PM

An overwhelming majority of employees in the UAE are open to their firms investing their end-of-service benefits, a survey has found.

Employees in the country receive a gratuity when they retire. Those who spend one year or more in continuous service are entitled to this end-of-service benefit.

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Savings and investment company National Bonds said its annual index found 82 per cent workers are open to their gratuity being invested on their behalf.

The 12th edition of the National Bonds Savings Index, an annual survey on the saving behaviour in the UAE, covered more than 2,000 Emiratis and expatriates. The company said the survey insight “strongly aligns” with a solution it launched: ‘Golden Pension Plan’.

Billed as the first-of-its-kind initiative in the UAE, it aims to enhance employees’ end-of-service benefits in both government and private sectors. Companies can contribute a lump sum or monthly deposits either from or on behalf of their employees. The deposits will be placed in the plan, while applicable profit and rewards are distributed to the employees with controls of fund resting with the company.

“This plan also helps individuals and corporates to invest in their future and support corporates with employee retention strategies,” National Bond said.

Multiple organisations have tied up with the company for the plan, “reinforcing the employers’ interest in safeguarding their employees end-of-service financials”.

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A Staff Reporter

Published: Wed 23 Aug 2023, 2:14 PM

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