Second salary in UAE: Who are subscribing to the scheme and how much do they save?
Second salary in UAE: Who are subscribing to the scheme and how much do they save?
Second salary schemes are gaining popularity among UAE residents, especially among expats from South and Southeast Asia and citizens, as they look to increase their income revenue streams.
Recently, second salary schemes were introduced by the saving and investment National Bonds and Emirates Draw.
National Bonds’ second salary plan starts with just Dh1,000 a month. Subscribers can choose a tenure from 3 to 10 years and get their savings multiplied. Once the savings period ends, they will receive the principal amount and the accumulated profit as income, for a duration of their choice, each month.
Meanwhile, Emirates Draw awards Dh25,000 a month for 25 years to the winner. Interestingly, the majority of the winners of Emirates Draw have been the nationals of South and Southeast Asia regions.
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The second salary plan is one of the latest initiatives launched by companies, offering residents a reliable strategy for safeguarding future income, particularly in the face of challenging market conditions. It offers a substantial financial cushion to maintain one’s present standard of living.
According to the National Bonds Savings Index, one of the major concerns highlighted by 33 per cent of residents – with a particular emphasis on women in their 40s – was reliance on a single income source.
Saqib Mahmood, group chief commercial officer at National Bonds, said since the launch of the plan in March 2023, almost 2,000 customers have signed up for the plan, out of which 32 per cent are women, with an average age of 38 years.
The top five nationalities enrolled in the plan are Indians (53 per cent), UAE nationals (13 per cent), Filipinos (8 per cent), Pakistanis (5 per cent), and Jordanians (2 per cent).
“It is evident that both Emiratis and expatriates harbour common savings aspirations, such as entrepreneurship initiation, home acquisition, and securing future educational opportunities for themselves and their children,” he said.
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Mahmood revealed that on average, customers save around Dh2,500 per month, while the total monthly collection is approximately Dh5 million.
“Financial stability and a secure financial future are top priorities for all residents in the UAE. During times of global economic uncertainty, especially following Covid-19, the importance of financial stability and a proper retirement plan has surged to unprecedented levels in the minds of residents,” said Mahmood.
source: khaleejtimes
