Understanding the Scheme

The End-of-Service Benefits Scheme is a voluntary program that invests employees’ end-of-service benefits in proven investment funds, aiming to provide investment returns upon employment termination.

Eligibility

This scheme is open to all employees, including both expatriates and UAE citizens, working in public, private, and free zone companies.

Benefits for Employers

Employers can benefit from increased job loyalty and productivity, focus on core commercial activities, and reduced costs compared to traditional gratuity schemes.

Benefits for Employees

Employees can choose from various investment options, facilitating financial planning and contributing to a more stable labor market.

Employer Obligations

To participate, employers must contract with licensed investment funds, select eligible employees, and calculate and pay the basic subscription amount within 15 days of the month.

Subscriptions and Categories

Subscriptions include basic and voluntary options, with skilled workers able to invest in low, medium, and high-risk assets. Skilled labor includes employees with a monthly salary of at least Dh4,000.

Withdrawing Contributions

Employees can request withdrawal of voluntary contributions, while the basic subscription amount is non-refundable to employers.

Leaving or Changing Employers

If an employee leaves a job, they can choose to receive financial benefits or continue investing in the scheme with a new employer. Employers may also change fund managers.

Investment Options

Options include capital guaranteed portfolios, risk-based investments, and Shariah-compliant funds.

Employer Withdrawal and Suspension

Employers can withdraw from the scheme with approval, and payments may be temporarily suspended under specific circumstances.

Fund Managers’ Responsibilities

Fund managers are responsible for offering various investment options and managing a minimum of Dh1 billion worth of funds and assets.