Pioneering expatriate employee gratuity platform in the UAE powered by Praxis
Global financial services firm Praxis Group, and the UAE’s National Health Insurance Company - Daman, a subsidiary of PureHealth, the largest integrated healthcare platform in the Middle East, have announced the joint venture launch of a ground-breaking digital platform that will enable companies in the region to manage their end of service (EOS) liability for expatriate employees along with optional personal savings plans for all employees.
The Daman Gratuity and Employee Benefits (GEB) Trust delivers a sophisticated and tailored employee gratuity program that helps businesses set aside EOS funds. Through the online platform, employers can fund their EOS liability via a purpose-built trust instead of managing it through business operating cashflows, which is typically the current model. With the Daman GEB Trust, the employee’s EOS benefits are held in a ringfenced account providing enhanced peace of mind and protection.
Employers can also offer their employees a separate personal savings plan, giving employees the option to allocate a portion of their salary to the trust and enabling them to manage their personal savings with a choice of investments from global asset managers through simple online access. The Daman GEB Trust delivers a more appealing employee package, helping businesses to attract and retain talent in an increasingly competitive market.
Praxis’ operation in the UAE provides gratuity management services to clients in the region and the firm has over 50 years of expertise in the pensions and employer solutions field.
James Barber-Lomax, Group Head of Pensions & Employer Solutions at Praxis, said: “Partnering with Daman on the launch of the Daman GEB Trust marks a significant development for Praxis, and we are thrilled to be bringing this pioneering product to the region, which will enable businesses to provide best-in-class structured sponsored benefit plans to their employees through an accessible and highly personalised gateway.”
Khaled Ateeq Aldhaheri, the Acting CEO of the National Health Insurance Company – Daman, commented: “As we look to diversify our product portfolio, the Daman GEB Trust is an exciting first step beyond the health insurance market for us, as well as the culmination of a 15-month journey to develop the product, which fills a growing gap in the market. We are delighted to be partnering with renowned global financial services group Praxis and look forward to leveraging their existing expertise to administer the trusts.”
Dan Toft, Senior Executive Officer of Praxis UAE, said: “Over the past 10 years, we have gained substantial experience in the provision of employer solutions to clients in the UAE, and we are committed to combining our expertise in this area with cutting-edge digitalisation to deliver future proofed market-leading services. Working with a company of Daman’s pedigree is a fantastic opportunity for us to demonstrate our commitment to this market.”
There are over six million* expatriate workers in the UAE, with most of them employed in the private sector and therefore eligible for EOS benefits from their employers. Globally, the trend is moving towards defined contribution schemes and mandatory provision by external providers.
*Source: Global Media Insight