Glossary

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Jurisdictions

The part of the UAE outside of free zones, where companies are subject to the local regulatory framework. For the purpose of EOSB, the relevant regulators include MoHRE and SCA.

A designated area within the UAE offering business incentives such as tax exemptions and simplified regulatory processes. Companies in these zones often operate under different regulations than those in the mainland.

A financial freezone in Dubai that was the first to introduce the End-of-Service Benefits Savings scheme replacing the End-of-Service Benefits Gratuity system in February 2020. DIFC currently has two qualifying EOSB Savings schemes – DEWS and Go Saver.

Regulators

The UAE government ministry responsible for overseeing labor laws, including regulations related to EOSB, employee rights, and employment practices.

The UAE regulatory body responsible for overseeing financial markets, including the regulation of EOSB funds to ensure they comply with national standards.

The UAE regulatory authority responsible for overseeing the financial services sector including banking, insurance and other financial institutions.

The regulatory body for financial services operating within the Dubai International Financial Centre (DIFC).

The federal government body responsible for the administration, collection, and enforcement of taxes in the United Arab Emirates. 

End-of-Service Benefits

A payment provided to employees by employers upon the termination of their employment in the UAE.

A form of EOSB in the UAE, where employees receive a certain amount of money upon leaving the company, based on their length of service and final basic salary.

The new savings scheme in UAE mainland, where monthly contributions are paid by employers to employee savings accounts which is then invested into approved funds to generate a returns over time.

EOSB Plans

The first End-of-Service Benefits Savings scheme that was introduced in the UAE within DIFC, where employers contribute to employee savings accounts that are invested to generate returns over time.

An End-of-Service Benefits Savings plan offered by Sukoon Workplace Solutions in DIFC. Sukoon Workplace Solutions is a subsidiary of Sukoon Insurance.

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Service Providers

An institution that has been licensed to establish funds for EOSB contributions from employers and employees in the UAE.

A banking institution in the UAE that holds and safeguards the EOSB savings fund, ensuring that the funds are managed in line with the regulations under Cabinet Resolution No. 96. 

The entity responsible for the day-to-day management of an EOSB Savings plan, including managing employee enrollments, contributions, and ensuring compliance with legal and regulatory requirements.

An entity that provides the technological infrastructure, platforms, or software used to manage EOSB Savings plans, enabling digital enrollment, contributions, tracking, and reporting.

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Investment vehicles

A fund that meets the regulatory criteria set by authorities (such as the UAE government) to manage and invest employee contributions in a pension or savings plan. It is authorized to manage EOSB savings on behalf of companies and employees.

A unique identifier assigned to securities such as stocks, bonds, or mutual funds. It is a 12-character alphanumeric code that helps standardize the identification of financial instruments across global markets. The ISIN is used to facilitate the clearing, settlement, and trading of securities and is recognized internationally.

A banking institution in the UAE that holds and safeguards the EOSB savings fund, ensuring that the funds are managed in line with the regulations under Cabinet Resolution No. 96. 

The entity responsible for the day-to-day management of an EOSB Savings plan, including managing employee enrollments, contributions, and ensuring compliance with legal and regulatory requirements.

An entity that provides the technological infrastructure, platforms, or software used to manage EOSB Savings plans, enabling digital enrollment, contributions, tracking, and reporting.

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A fixed-income security that represents a loan made by an investor to a borrower (typically a corporation or government). Bonds have a maturity date and pay interest (coupon) to the bondholder.

Investment funds primarily composed of stocks or shares in companies. These funds typically offer higher potential returns but come with higher risk due to the volatility of the stock market.

A type of investment fund that holds a portfolio of assets, such as stocks or bonds, and is traded on exchanges like a stock. ETFs are used within EOSB savings plans to provide broad market exposure at lower costs.

Pre-designed investment portfolios that offer diversified investment strategies within EOSB Savings plans. Model portfolios are used to manage risk and generate returns based on factors such as the employee’s age, risk tolerance, and retirement goals.

Contributions

The wage stipulated in the employment contract, which is paid to employees on monthly, weekly, daily, or hourly basis in exchange for the performance of their duties under the employment contract, without additional bonuses or allowances.

The Basic wage plus cash allowances and in-kind benefits that are outlined in their employment contracts or under the law, as well as benefits in-kind provided to employees by employers, or their equivalents in cash, if these benefits are incorporated into the salary or allowances an employee is entitled to under their employment contract or establishment's system as compensation for their work, the risks associated with their work or any other reason. Allowances provided to cover high living costs or a percentage of sales, or a percentage of profit derived from the employee's efforts.

The percentage of salary that is legally required to be contributed to an employee’s End-of-Service Benefits Savings account as defined by Cabinet Resolution No. 96.

Additional contributions made by employees to the EOSB Savings plan at the employees discretion to increase the amount saved for retirement, subject to the maximum limit as stipulated by Cabinet Resolution No. 96.

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