Employee Benefits are those elements of an employee’s employment package which are in addition to salary. These act as incentives to retain existing valued staff and attract top quality new recruits.
Medical Insurance is a now compulsory which requires all employers to provide this to their employees holding Dubai or Abu Dhabi residency visas. There are over 40 insurance companies offering medical insurance in UAE, each of these has several different products targeted at different market segments. A professionally qualified adviser provides assistance with selecting the right fit for your company as well as on-going service through out the year for NO EXTRA COST.
Gratuity Funding is not yet compulsory but is anticipated in the next few years. Employers have a liability to pay at the end of service to employees. This liability can be considerable. Often this is only a book entry in the accounts with no physical allocation of resources. Consequently, when a staff member leaves it has a direct impact on cash-flow. Provisioning for this over time smooths out the impact of staff turnover especially during times where lay-offs are part of an enforced or planned change in business strategy.