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FINANCIAL NEWS
UAE may apply an expatriate pension scheme
30 Oct 2011
(MENAFN) The UAE is studying a pension scheme for expatriate workers, including building a local asset management industry and boost financial markets, Financial Times reported.
According the news paper, more than seven million guest workers may be asked to contribute to a pensions system if plans progress.
Harun Kapetanovic, head of the studying team said that they have a starting point of about eight percent contribution of basic salary from the employer.
He added that the pensions plan would not be used to fund government development projects, but would aim to enhance the welfare of expatriates.
Currently, firms working in GCC are required to provide an end-of-service payout to employees, calculated on the length of the employment and basic salary.
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