UAE’s end-of-service benefits scheme: Here is all you need to know about it

UAE’s end-of-service benefits scheme: Here is all you need to know about it

Published: Mon 6 Nov 2023, 6:00 AM

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) and the Securities and Commodities Authority (SCA) last week began implementing the new alternative scheme for end-of-service benefits for employees working in public and private sectors and free zones.

Khaleej Times examined the cabinet resolution about the new end-of-service scheme. Here is all you need to know about the new saving scheme introduced for employers to attract the best talent.

What is the scheme?

The voluntary scheme through which end-of-service benefits of employees are invested in well-proven investment funds with good records. The scheme aims to provide investment returns to employees on their end-of-service benefits.

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Who can subscribe to the scheme?

The end-of-service scheme has been introduced for employees working in public, private and free zone companies to offer them an alternative system to the existing gratuity payment practice. Employers have the option to choose the scheme.

Is this scheme open for all employees?

Yes. Both expatriates and UAE citizens are eligible for this new scheme.

What are the benefits of the scheme for employers?

Some of the key benefits are that it aims to ramp up employees’ job loyalty and productivity;