The new alternative End-of-Service Benefits (EOSB) savings scheme is a significant shift from the current system of simply accumulating the EOSB liability until employees separate from the company – by way of resignation, termination, or death. Apart from the accumulated EOSB provision, the cost to the company will now be a known percentage of payroll, […]
Many companies have been enquiring about the new alternative End-of-Service Benefits (EOSB) Savings scheme that was announced last year. Given that enrolment is entirely optional at present, companies are weighing the pros and cons of transitioning to the new scheme. We discussed in a previous article some key considerations for HR managers when transitioning to […]
People buy life insurance mainly for two reasons: Protection in the case of death or disability (obviously) and for investment purposes. Hence the life insurance industry has designed products (policies) in response to these needs. Some policies provide protection only (e.g., term insurance) and at the other end of the spectrum there are pure investment […]
This article is authored by Ruan van Rensburg, Executive Director at Lux Actuaries and Consultants and was first published by the DIFC Insurance Association on 9 July 2024 and updated on 11 July 2024. Members in the DIFC will be well acquainted with DEWS – a defined contribution saving scheme that replaced the old unfunded […]
Back in 2020, Dubai International Financial Centre (DIFC) introduced the DIFC Employee Workplace Saving scheme, better known as DEWS. DEWS essentially restructured the old ‘defined benefit’ (DB) End-of-Service gratuity plan in the DIFC into a funded ‘defined contribution’ (DC) plan. In short, employers pay a percentage of employee wages as monthly contributions and each employee […]
Once the new end-of-service savings scheme (‘EoSS’) takes off in the UAE, and once it becomes compulsory, every month, every single employer will pay a certain percentage of every single employee’s salary into investment funds. Question: How much money will there be in these funds, after one year, after five, after ten? The answer to […]
Ever since the new End-of-Service Savings (‘EoSS’) scheme was announced by the UAE’s Cabinet of Ministers late last year, rumours have been doing the rounds on who will enter the market first and launch a compliant EoSS product. Fund managers For Fund Managers, EoSS is literally a dream come true with the opportunity to significantly […]