Ek Provident Fund

[Heleheleyani]

Hello,

I was wondering if anyone can provide some information about the Emirates Group Provident Fund please.

I would like to know what's the employee contribution (voluntary and compulsory), company contributions, qualification requirements (how long and percentage) and how is the fund invested?

Thank you

[FJCruiser]

Sorry to ask but do you work for EK or applying ?.This type of info is confidential as part of your contract.

[Mister Warning]

Oh yeah absolutely top secret FJ.... wow.

[Mister Warning]

From the EK career website :

Provident Fund/End of Service Gratuity
On leaving the Company an employee is entitled to an End of Service Gratuity or Provident Scheme payment, whichever is higher. The Provident Scheme is a long-term savings arrangement provided to more senior positions and is designed to help plan for retirement. The company contributes 12% of basic salary. You are required to contribute 5% of your basic salary. End of Service (gratuity) payment is calculated as 21 days basic salary per annum for the first 5 years of service and then 30 days basic salary per annum for each year of service beyond 5 years of service.

Took me 2 minutes... even the taxman is clever enough to find it.

[Jet II]

Basically you have to do 7 years in the company to get all of your contributions and the companies contributions back (and any profit of course). If you leave before that you dont get the companies contributions back (it varies a bit depending on when you leave)

Investing is up to you - there are about 10 approved funds of varying risk that you can invest all or part of your fund in. You can swap funds about 8 times a year without charge, otherwise it costs.

Contributions are compulsory.

[Trader]

But if you leave, say after 5 years, you get the greater of whatever the company owes you in regards to the provident fund OR 21 days times 5 years. You actually don't have to stay the full 7 years to collect something.

Though one would hope that it would be worth more than the 21 days times 5 years :)

[Ketek400]

Mine grew by 2% since I started with EK 4 years ago!!! Hope it performs better in the next 4!!!!

[nakbin330]

Mondial provide all pilots with two free advice sessions per annum.

Just call them and book an appointment, easy.

[MumbaiRadio]

And the 5% emploee contribution is the minimum, you can mandate the company to save a higher percentage if you want to.. and after 10 yrs of service the company share goes up form 12% to 15% percent of basic so you are effectively saving at least 20% of your salary basic each month.. hope that helped..overall I find the provident fund a good way to save even if I have to admit the returns haven't been that great so far..

[harry the cod]

Ketek400

Have you ever thought of investing in something other than cash? ;)

Harry

[40&80]

Harry...Invest in wine, women, horses,and anything that floats...the rest you can waste.

[BigGeordie]

The end of service gratuity is a UAE legal requirement which you have to get if you have been here more than a year. If you leave within 7 years you will get back the 5% of your salary you have paid into the provident fund as well but not the company contributions.

If you stay 7 years you will get all of the company contributions (12% of your basic salary) as well as your contributions (5%) as well as any growth. If that is less than the legally required end of service gratuity the company has to top it up. I can't imagine it would ever be less though.

Hope that makes it clear. In any event remember that the calculations are done on basic salary and do not include bonuses, flight pay, housing allowance, training pay or anything else.