In line with the UAE’s efforts to develop the work environment and enhance financial security for employees, the Voluntary Alternative End-of-Service Benefits System (‘Savings Scheme’) was launched by Cabinet Resolution No. (96) of 2023.
The Scheme aims to provide a sustainable alternative to end-of-service gratuity, allow workers to earn valuable investment returns, and foster a culture of saving, in line with the UAE Government’s advancement towards a stable and sustainable work environment that protects labour rights and supports competitiveness.
The system allows employers in the private sector and free zones to pay monthly contributions that are invested in approved investment funds, including Lunate, First Abu Dhabi Bank, Daman Investments, and National Bonds. Establishments can choose the appropriate fund and register directly through the funds’ own platforms or the MoHRE portal: https://www.mohre.gov.ae/ar/media-center/awareness-and-guidance/alternative-end-of-service-benefits-system-savings-scheme.aspx
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