On February 1, 2020, the Dubai International Financial Centre (DIFC) introduced a workplace savings scheme that replaced traditional gratuity payments. The new initiative, the DIFC Employee Workers Savings (DEWS) plan, mandates employers to contribute monthly to a professionally managed savings plan for their employees. However, DEWS calculations can pose compliance issues for HR and finance teams if not properly managed.

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Let's face it—tracking contributions, handling employee queries, onboarding new employees, and paying workers early can be overwhelming, especially when combined with other administrative tasks. Even minor oversights can lead to compliance issues or financial losses.

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But these challenges don’t have to be insurmountable. In this article, we'll explore the intricacies of DEWS management and demonstrate how DIFC companies can alleviate the associated stress through automated solutions.

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The Complexities of DEWS Calculations and Payouts

Managing DEWS contributions presents several challenges for organizations. Here’s an overview:

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Dynamic Contribution Calculations 

Managing DEWS would be simpler if it involved a single, uniform formula for all employees. However, contributions vary based on multiple factors, including nationality exceptions, service duration, type of employment, and probation period. For example, employers are required to contribute 5.83% of the basic salary for employees with less than five years of service while taking into account the probation period and 8.33% for employees with more than five years of service. 

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These varying rates make manual calculations susceptible to errors. Moreover, if your payroll system isn't equipped to automatically handle these contributions, inconsistencies can arise.

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Compliance Requirements 

Achieving accurate DEWS calculations is just one side of the coin. HR teams must also stay updated with DIFC regulations governing the administration of the savings scheme, which includes employer contributions, precise record-keeping, timely submissions, and salary adjustments.

Companies need a comprehensive understanding of both the regulatory framework and the individual calculations. For instance, DIFC employers must meet the deadline of the 21st day of the month following the payroll cycle. Failure to do so can attract individual fines of up to $2,000 per employee. 

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Administrative Challenges

Managing DEWS calculations involves significant administrative challenges, including accurate reporting, record-keeping, tracking and submitting contributions, responding to employee queries, adjusting for salary changes, managing exchange rates, and handling other routine tasks.

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Calculating correct payouts and ensuring compliance only adds to the complexity. Without the right HR compliance tools, these tasks can be overwhelming. Already, high volumes of work are a top challenge for 80% of HR leaders, as evidenced by Sages’s HR Research report. 

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Benefits of Automated DEWS Solutions for DIFC Companies

With manual processes being both time-consuming and prone to error, automated solutions present a viable, streamlined alternative. Automation reduces the administrative burden, ensures compliance, and improves overall efficiency. Here’s how:

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Streamlined DEWS Calculations

Automated solutions use real-time payroll data to accurately track DEWS contributions and calculate payouts. They also ensure compliance with DIFC requirements without the need for manual input.

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Error Reduction

In a study by PwC, companies that adopted automated HR solutions saw a 45% reduction in compliance errors and 30% faster processing times on average. Automation ensures that all data is updated in real-time, and discrepancies are flagged immediately for resolution. As a result, HR teams can feel confident that calculations are always accurate, with no manual intervention needed.

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Time-Saving for HR Teams

Since automation eliminates manual data entry, rigorous calculations, and regular updates, it saves time that would have been spent on repetitive DEWS-related tasks.

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For example, Rongzhong Li, Founder and CEO of Petoi, relies on automated solutions to simplify tracking contributions and calculating payouts. He notes how “automation reduces errors and saves time, making the entire process seamless while ensuring transparency for my employees and the business.” 

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Automated Reporting and Audits

Compliance and decision-making require detailed reporting on contributions and performance. Automated DEWS solutions simplify this process by generating real-time reports that cover essential details, such as contribution dates, amounts, and adherence to DIFC laws. 

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These systems also conduct regular audits by continuously monitoring contributions, payments, and salary adjustments, ensuring that all records are up-to-date and accurate. Automated reporting provides HR teams with easily accessible and transparent records of payouts, facilitating straightforward retrieval of audit data without the hassle of manually gathering information from multiple sources. 

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This transparency helps maintain compliance, supports informed decision-making, and enhances overall audit efficiency.

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How RemotePass Simplifies DEWS Management for DIFC Companies

Relying on a generic payroll system to manage your employee savings plan may leave gaps in meeting DEWS requirements. An effective payroll system must be specifically designed to handle the complexities of the DIFC Employee Workplace Savings (DEWS) plan. This includes accommodating different contribution tiers, employee tenure, probation period, nationality, and variable pay.

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That’s where RemotePass comes in. It is an all-in-one automated HR and payroll solution tailored for DIFC companies aiming to manage the DEWS plan efficiently. 

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Here’s how RemotePass simplifies and automates the DEWS process:

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End-to-End Automation of DEWS Contributions

RemotePass automates every aspect of DEWS calculations and payouts, ensuring precision and timeliness. Our system manages all DEWS-related processes automatically, from calculating contributions to making payments directly to your designated DEWS bank account.

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With features like automated payments and real-time processing, RemotePass eliminates the delays and complications associated with manual processing in spreadsheets. Our platform also generates monthly DEWS reconciliation reports instantaneously, which are readily available for download and analysis.

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On top of that, RemotePass ensures adherence to DIFC regulations, covering provisions for GCC nationals and probation periods. All these in place help you avoid penalties, fines, and employee distrust that would have emerged through missed deadlines or wrong figures.

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Real-Time Compliance Updates

Compliance can be a challenging aspect of managing the DIFC Employee Workplace Savings (DEWS) plan. And so, you need to have a solution that automatically updates in response to regulatory changes.

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RemotePass is designed to automatically adjust DEWS calculations to accommodate new regulations or salary changes. This functionality ensures that you stay current with the latest regulatory changes, relieving your HR and finance teams from the burden of manual updates each time a new law is enacted. 

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With RemotePass, compliance becomes a stress-free process rather than a constant struggle.

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Integrated Payroll and Benefits Management 

RemotePass is not only tailored for DIFC-specific needs but also serves as a comprehensive HR solution designed to simplify the entire employment lifecycle. It allows companies to manage HR and payroll for their UAE employees while also enabling the hiring of EOR employees and contractors globally.

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RemotePass’s Local Payroll solution supports all UAE jurisdictions, including WPS payroll for mainland, DMCC, and JAFZA, as well as GCC pension contributions for GCC nationals. This enables you to consolidate local and global payroll, including contributions, in a single AED transaction.

Employee Self-Service Access

With RemotePass, employees can easily access important documents, request HR letters, manage their expenses, and submit time-off requests—all in one place. Additionally, they can view and download their payslips whenever needed.

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Automate DEWS Calculations Seamlessly with RemotePass

Without automated DEWS solutions, DIFC companies face the risks of navigating a complex and error-prone process, fraught with mistakes, stress, and potential penalties. Automated solutions like RemotePass are essential for achieving efficient and accurate results.

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Whether you're a startup or a large enterprise, RemotePass simplifies your UAE payroll operations and optimizes your HR processes for comprehensive compliance. Start with RemotePass today and experience streamlined DEWS management.