The Savings Scheme allows private sector employers to redirect end-of-service gratuity payments into investment funds, helping employees grow their savings through strategic investments. Employers can subscribe to the scheme through accredited fund managers, with the option to retain past gratuity entitlements.
Employees also have the flexibility to make voluntary contributions, up to 25% of their salary, to boost their long-term financial security. The scheme offers multiple investment options, catering to diverse financial goals:
- Capital Guarantee Portfolio – Ensures low-risk savings growth.
- Risk-Based Investment Options – Allows for higher returns with varied risk levels.
- Shari’a-Compliant Fund – Aligns with Islamic investment principles.
Flexibility for workers and employers
Workers can withdraw part or all of their savings based on the scheme’s terms and conditions. If an employee moves to a new company, they can either withdraw their accrued savings from the employer’s fund, keep the funds invested and continue earning returns or transfer contributions if the new employer opts into the same scheme.
Employers also have the choice to register employees under a different fund manager, assuming the necessary contribution fees.
Who can enrol?
While skilled workers can choose from all investment options, unskilled workers are limited to the Capital Guarantee Portfolio. The scheme also extends to independent business owners, freelancers with UAE work permits, non-citizen government employees and Emiratis in both public and private sectors.
These individuals can voluntarily enrol and make additional contributions to grow their savings securely.
MoHRE has emphasized the long-term benefits of the scheme, encouraging private-sector companies to participate. The initiative enhances job stability, reduces employer costs, and supports financial sector growth in the UAE.
Ahmed Al Yassi, Acting Assistant Under-Secretary for Labour Protection at MoHRE, stated:
"These workshops align with our vision of fostering sustainable partnerships and reinforcing the UAE’s global leadership in labour market practices.”
Companies and employees can access regularly updated information on MoHRE’s website, including details on accredited investment funds and subscription processes. The UAE’s Savings Scheme is set to reshape end-of-service benefits, offering a modern, sustainable approach to financial security.
