REGULATORY UPDATE

Mandatory DEWS Plan - Effective 1st Feb 2020

The DEWS (DIFC Employee Workplace Savings) Plan is a progressive End-of-Service Benefit Plan introduced within the Dubai International Financial Center (DIFC) to restructure the current End-of-service Gratuity Plan into a funded and professionally managed Defined Contribution Plan.

Employers can claim exemption from joining DEWS if they have an Alternative Qualifying Scheme and have obtained a Certificate of Compliance from DIFC. 

All employees who are on DIFC Visa will need to be enrolled into the plan. 

Contributions

The various types of contributions to the DEWS plan which are to be transferred to the Trustee’s Bank Account by the due date are as follows:

  • Mandatory Minimum Employer Contribution

For a period of up to 5 years of service = 5.83% of the Employee's Monthly Basic Salary; and

For the period in excess of 5 year’s service = 8.33% of the Employee's Monthly Basic Salary.

  • Voluntary Employee Contributions

Employee Contributions is the DEWS Booster which an employee can opt to contribute which is deducted from their monthly salary and then transferred by the Employer.

  • Optional Contributions

Accrued Gratuity as of 31st Jan 2020 by obtaining a letter of written consent from the employees.

How can Grant Thornton Help

We work with our domestic and multinational clients who represent a wide variety of industry sectors, in order to understand their business needs, before implementing systems and processes to manage their Payroll function suited to their specific needs. 

Our team of payroll experts can support your payroll function by providing guidance on online registration and monthly calculation of the DEWS Contribution, preparing an accurate monthly file to be submitted via DEWS portal, advising on or calculating client the contribution amount to be transferred to the Trustees Bank Account, and calculating the End-of-Services accrued amount as of 31st Jan 2020.


At Grant Thornton, we take care of all our client's payroll needs such as new joiner and leavers process, changes in employees' salary, existing End-of-Service computation and now the new DEWS plan.

The Management of our clients is able to focus on their core business activities knowing Grant Thornton will ensure they are in compliance with the various requirements of the DIFC Employment Law.

 

For further details on how we can help you with the DEWS plan, kindly contact Atul Varma and Ramesh Poongavanam.