Thursday, 27 March 2008

Expat pension plan under study

Expat pension plan under study
Gulf News Report Published: March 27, 2008, 00:18

Abu Dhabi: Expatriates are likely to be brought under the national pension scheme, according to a government plan.

A proposed "Pension Savings" draft law is being studied by the General Authority for Pensions and Social Insurance (GAPSI), and aims to include all expatriates working in the public and private sectors, a senior official said yesterday.

At present, pensions in the private sector are provided through an end-of-service payment (gratuity) relative to the employee's length of service calculated on the basis of basic salary.

"The law is still being studied, and we expect the studies to conclude by the end of April, and that will be followed by receiving the necessary initial approvals," Abdul Rahman Al Baqer, GAPSI's deputy director, told Gulf News.

Raft of proposals

"The proposal covers all expats in the country's public or private sectors, and I want to make it clear that this endeavour was not commissioned or directed by the government ... it comes as an initiative from the authority itself according to the outline set by the leadership, within the framework of our strategy to include all those working in the UAE in the pensions scheme," Al Baqer said.

The study includes various pension proposals and mechanisms to implement it. "We are not consulting businessmen or companies over the proposed legislation," Al Baqer said.

As per the proposed legislation, the pension amount will be collected by an entity other than the companies of the employees, through monthly subscriptions to be cut from their salaries in favour of their respective accounts with GAPSI.

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