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The Dubai International Financial Centre (DIFC) has implemented the new changes to the Employment Law that require contributions to a savings scheme for Gulf nationals working at the financial hub.
The latest amendments to the legislation, as well as the Trust Law, Foundations Law and Operating Law, have been enacted following a period of public consultation in 2023, the DIFC said in a statement on Thursday.
The updates were promulgated by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, to ensure the DIFC’s laws continue to meet global best practices.
Among the legislative changes, Part 10 of the existing Employment Law will now require DIFC companies to make top-up payments into a Qualifying Scheme, which includes the DIFC Employee Workplace Savings plan (DEWS) for employed GCC nationals, in addition to making contributions to the workers’ General Pension and Social Security Authority (GPSSA).
The top-up payments are required in cases where the amount of the employees’ GPSSA contributions are lower than what they would have received as monthly end-of-service contributions under the Employment Law if they were not GCC nationals.
“Effectively, this levels the playing field for GCC nationals in DIFC that otherwise would have received less in the form of their monthly GPSSA benefits,” the DIFC explained.
Other amendments that have been enacted apply to situations where a Qualifying Scheme is not allowed to receive contributions from a company or worker that is subject to sanctions.
The DIFC said it has also enacted the latest changes to the Trust Law, Foundations Law and Operating Law.
(Writing by Cleofe Maceda; editing by Seban Scaria)
