TOP 12 things you should know about DEWS
DIFC will be implementing its DEWS policy starting February 1 , 2020. If you are operating within DIFC or just someone who wants a quick understanding about it, here are 12 quick things you should know.
- Following Global Standards – DIFC’s wants to replace the end of service gratuity (EOSG) with a funded workplace savings plan. The aim is to align benefits with global retirement savings standards.
- Mandatory for all DIFC employers– All DIFC employers are obliged to participate. A Qualifying Plan will require a Certificate of Compliance from the DIFC Authority and shall have to adhere to the Qualifying Plan requirements that will be set out in the Regulations to the Employment Law.
- Multiple Scheme options – Employers can choose the DEWS scheme or opt for a 3rd party provider as long as it accredited by DIFC and the value is equivalent to that of DEWS.
- Designed for Expats – DEWS is designed to replace the current end-of-service benefit entitlement for expatriate employees only. The plan will not include the UAE nationals or GCC nationals with social security accruals. However, employers or employees may choose to voluntary contribute.
- Flexible changes – Employees can control their portfolio they’ve invested to on demand. The changes can be done via the website or mobile app without incurring charges.
- Cost – The overall cost for DEWS Plan has been settled at 1.33% at the Plan commencement date, which is within the price range of 1.25% to 1.50% targeted by DIFC during the competitive bidding process selecting the service providers to the DEWS Plan. This includes trust, administration and investment services.
- Access – Employees can access their benefits in any country, provided that the bank account to which the proceeds of such benefits will be paid must be in the name of the employee or the beneficiaries nominated by the employee. Information on employee portfolio are accessible online via desktop or mobile application
- Implementation urgency – Participating employers are required to enroll with the DEWS Plan prior to the Plan commencement date (February 1, 2020). Enrolment with a qualifying Plan will be mandatory requirement.
- Required HR changes – Employer are expected to make necessary changes to their internal HR/ admin systems in order to:
- make mandatory contributions for eligible employees
- deduct the amounts relating to employee voluntary contribution from employee payroll
- upload monthly contribution files
- transfer the relevant amount to the bank account of the DEWS Master Trustee for investment
- Multiple entities in DIFC – Companies that have multiple entities in the DIFC will have separate accounts for each entity at the time of launching DEWS.
- Payroll on Excel – All information is required to be uploaded in a specific format.
- GDPR Compliance – The new administration system will be compliant with the relevant Data Protection regulations. The system will be hosted by Amazon Web Services in Dublin and all employee data will be stored there.