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Expatriate employees in countries including the UAE and Qatar are not satisfied with their current End of Service Gratuity (EoSG) system, a survey found. 

According to the poll conducted by the global retirement platform Smart, 60 percent of the 1,504 participants who opined in the survey noted that the present EoSG system fails to meet their needs. 

Dissatisfaction over EoSG System

Even though 84 percent of the participants cited the benefits offered by their employer as playing a role in their decision to move to the Middle East, most of them expressed their strong dissatisfaction with the current EoSG system. 

Of the expats polled, 88 percent said they are actively prioritising retirement savings over other expenses, and 82 percent said having enough money for retirement is "very important" to them.

"The findings clearly show that the current workplace savings system has significant opportunities for change in order to fully meet the needs of today's expatriate workforce in the GCC," said Tim Phillips, managing director of Smart, Middle East and Asia. 

The Vitality of Employee Contribition

According to the poll, the absence of employee contribution options is widely regarded as a significant flaw in the current system.

For example, in Qatar, respondents called on the government to "make it compulsory for both employer and employee to contribute towards retirement funds."

Participants in the survey also added that the presence of an employee contribution, even though small, could add value to their end of service gratuities.

Moreover, respondents also underscored the importance of more professionalised and regulated workplace savings and pensions culture in the Gulf Cooperation Council nations. 

"Reform is needed to improve transparency and introduce employee investment options across the region to help workers better plan for retirement. Implementing these reforms will not only secure the financial futures of our workforce but also bolster the GCC's reputation as one of the world's leading destinations for global workers and savers," added Phillips.