The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) has launched an alternative system for end-of-service gratuity for workers in the country. Minister Abdulrahman Al Awar announced this new gratuity scheme during a media briefing in Dubai.
Under this system, employees can opt to contribute a percentage of their salary or a lump sum in addition to their basic subscription payment made by their employers. The gratuity funds will be held in licensed investment funds, and decisions will be made by licensed fund managers.
This voluntary program aims to provide a safety net for employees, ensuring that they receive their end-of-service benefits even if their employer faces financial difficulties.
The alternative scheme is optional for both expatriates and Emiratis, offering an alternative to the lump-sum gratuity payment system in place.
Employers must register with the Ministry, select licensed fund managers, and decide which employee categories are included.
There is no minimum salary requirement, and contributions can be withdrawn under certain conditions.
Additionally, self-employed individuals and various employee groups can participate, provided they meet certain criteria. This new scheme offers employees an opportunity to save and invest their benefits, adding a layer of financial security for the workforce in the UAE.
