UAE Launches a New End-of-Service Scheme

  • Publish date: Wednesday، 01 November 2023
UAE Launches a New End-of-Service Scheme

The UAE has launched an end-of-year scheme in the country. The Minister of Human Resources and Emiratisation Dr Abdulrahman Al Awar said that registering for this scheme is optional. 

The scheme is open to employees of public and private sectors as well as of free zone entities. 

If employers decide to apply for the scheme, they need to specify which staff members will be part of the scheme. 

The end-of-service scheme gives employees the choice to either receive financial benefits after the termination of their employment contract or to continue investing in the end-of-service scheme. 

Dr. Al Awar has explained that employees can request the withdrawal of all or part of the voluntary contribution amount and investment returns. 

This scheme will help increase investment revenue for subscribers and the scheme also offers an additional voluntary contribution option. 


The employer will submit a request to the Ministry of Human Resources and Emiratisation and then choose an approved investment fund.

Employers need to choose the employees that will be part of the scheme. 

The employer can select the investment fund and sign the subscription contract.

The employer has to identify the fun administrator who will be contacted for the registration and participation of employees. 

A savings account will be opened for beneficiaries after they are registered where the employer will transfer the monthly contribution from the beneficiary's salary.


There are two types of subscriptions:

  • Basic subscription: Contributions from beneficiaries are transferred to the low-risk investment funds. This subscription is for non-skilled workers. 
  • Voluntary subscription: This subscription is for skilled workers. They can direct their funds to high-risk to medium-risk investments. 

Contributions to the scheme will be made based on how long an employee has worked with the company. 

Employees who have worked with the company for less than five years will have 5.83% deducted from their salaries. 

Employees who have worked for more than five years with a company will have 8.33% deducted from their salaries. 

Participants have the option to increase their contributions to approximately 25% to increase their investment returns. 

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