This Week in Payroll: Monday, October 24, 2022
Welcome to another week of Payroll News! This week, we've pulled together information surrounding changes to the travel process for travelers and expats working in the Philippines, Global measures advocated by the ILO to help improve the outcomes of the current cost-of-living crisis worldwide, as well as a look at the United Arab Emirates' recent 'Golden Pension' Scheme and the impact on setting up the expat community for the future.
Embassy Endorsement No Longer Required for Expats
As a response to the complaints received from Expatriates flying home, the Philippine Government has replaced their online travel Database. The eArrival Card is now required in place of the previously honored One Health Pass.
This new method promises to improve the previously tedious and inconvenient process of managing the One Health Pass system that often backed up the airline queues. The new eArrival Card will also designate a special area of the airport and specialists to help guide Expats and Travelers through the process.
International Labor Organization advocating minimum wages and social protection adjustments
Amid the cost-of-living crisis, the ILO is advocating adjustments to current social protection programs as well as minimum wages across the world. These changes focus to improve pro-activity to crises in the wake of the COVID-19 pandemic that shook the economy and workforce to its core in recent years.
In reference to policies and intent, ILO Director-General, Gilbert F. Houngbo quotes:
“At this challenging time, it is essential that we seize the initiative and shape the future so that it delivers a better, more equitable and sustainable world that will also contribute to lasting peace,”
With a focus on improving productive employment to help reduce inequality, Huongbo notes that long-term policies would work to close large-scale gender gaps on pay, pension and quality of employment.
These proposals hope to improve the current cost-of-living crisis resulting from the pandemic and dangerously high inflation amid social, economic and environmental adversity.
‘Golden Pension’ Scheme Launched for Private Sector Expats
With 89% of UAE’s population being Expatriates (over 8 million expats) working in the private sector, this launch allows for those employees to contribute toward their retirement planning and strengthen their financial resilience. This scheme will allow for employees to have visibility into their pension portfolio and access competitive returns in their contributions through the National Bonds’ rewards program (of Dh35 million).
The 'Golden Pension' scheme hopes to not only support employees long-term planning and well-being, but also to improve employee retention strategies among UAE corporations.
The way the Golden Pension scheme works is by having companies register through the National Bond to invest in their employees’ end-of-service benefits as a lump sum OR they can invest a portion of it. Employees can also choose to put smaller monthly portions towards their pensions, with a minimum of Dh100, which is a little over $27.00.
Each employee will have a hosted account that the employer will manage for them under the ‘Golden Pension’ scheme.
The money will be invested in “money markets, such as deposits with banks, sukuks and in the company’s income-generating real estate portfolio,” – Mohammed Al Ali, chief executive of the savings scheme provider.