UAE Voluntary End-of-Service Savings Scheme (Cabinet Decision No. 96 of 2023) & DIFC DEWS Explained
Under Article 51(8) of the UAE Labour Law and Cabinet Decision No. 96 of 2023, the UAE launched the Voluntary Alternative End-of-Service Benefits (EOSB) Savings Scheme—modeled on the successful DIFC Employee Workplace Savings (DEWS) plan. Instead of waiting until termination to pay an unfunded lump-sum gratuity, participating employers contribute 5.83% (Years 1–5) or 8.33% (Year 6+) of an employee's monthly Basic Salary directly into a regulated investment fund managed by licensed providers (such as Lunate, National Bonds, Daman Investments, or First Abu Dhabi Bank).
Key Statutory Takeaways (2026)
Open Gratuity & Labour Law Calculator →- Monthly Employer Contribution Rates: 5.83% of monthly Basic Salary for employees with under 5 years of service; 8.33% of monthly Basic Salary for employees with 5+ years of service.
- Why 5.83% and 8.33%? Because 21 days ÷ 360 days = 5.833%, and 30 days ÷ 360 days = 8.333% — matching the exact mathematical value of the Article 51 gratuity tiers!
- Protection Against Employer Insolvency: Because funds are transferred every month into an independent SCA-regulated trust account in your name, your gratuity is 100% protected plus earns compound investment returns.
- Employees can also make voluntary personal top-up contributions (up to 25% of total salary) into Sharia-compliant, Capital-Protected, or Growth funds.
In This Guide (Quick Jump)
- 1. How the UAE Alternative EOSB Savings Scheme Works (Cabinet Decision 96)
- 2. The Exact Math Behind the 5.83% and 8.33% Contribution Rates
- 3. What Happens to Your Past Accrued Gratuity When Your Company Joins?
- 4. DIFC DEWS Plan: Mandatory Rules for DIFC Employees
- 5. Capital-Protected, Sharia-Compliant & Growth Investment Funds
- Statutory Comparison Table
- Frequently Asked Questions
1. How the UAE Alternative EOSB Savings Scheme Works (Cabinet Decision 96)
Supervised jointly by the Ministry of Human Resources and Emiratisation (MOHRE) and the Securities and Commodities Authority (SCA) under Cabinet Decision No. 96 of 2023, the Alternative End-of-Service Benefits Scheme allows mainland and free zone employers to transition selected employee categories from the traditional Article 51 unfunded lump-sum gratuity to a funded monthly workplace pension/savings account. Compare your baseline lump-sum entitlement anytime on our UAE Gratuity Calculator.
2. The Exact Math Behind the 5.83% and 8.33% Contribution Rates
The monthly contribution rates in both the MOHRE Alternative Scheme (Decision 96) and the DIFC DEWS Plan are engineered to equal the exact statutory 21-day and 30-day gratuity tiers:
- First 5 Years of Service (5.83% of Monthly Basic Salary): Since 21 days of a 360-day standard year is
21 ÷ 360 = 5.833%, paying 5.83% of your Basic Salary every month for 12 months equals exactly 21 days of Basic Salary per year! - More Than 5 Years of Service (8.33% of Monthly Basic Salary): Since 30 days (1 month) divided by 12 months is
1 ÷ 12 = 8.333%, paying 8.33% of your Basic Salary every month for 12 months equals 1 full month of Basic Salary per year!
3. What Happens to Your Past Accrued Gratuity When Your Company Joins?
If you worked at a Dubai company for 4 years before the company enrolled you in the MOHRE Alternative Savings Scheme on November 1, 2026:
- Your traditional Article 51 gratuity for your first 4 years is frozen/preserved (and paid out upon final termination based on your Basic Salary at the date of switchover, or transferred into the fund by the employer).
- Importantly, those 4 prior years still count toward your 5-year service clock—meaning after just 1 more year in the savings scheme, your employer's monthly contribution jumps from 5.83% to 8.33%!
4. DIFC DEWS Plan: Mandatory Rules for DIFC Employees
If you work in the Dubai International Financial Centre (DIFC) under DIFC Employment Law No. 2 of 2019 (as amended), enrollment in DEWS (DIFC Employee Workplace Savings, administered by Zurich / Equiom) or a Qualifying Alternative Scheme has been mandatory since February 1, 2020, using the exact same 5.83% (under 5 years) and 8.33% (5+ years) monthly employer contribution rates.
5. Capital-Protected, Sharia-Compliant & Growth Investment Funds
Approved fund managers (including Lunate / Ghaf Benefits, National Bonds, Daman Investments, and FAB) allow employees to choose their risk profile: (1) a Capital Guarantee / Money Market Fund (mandatory default for unskilled workers to guarantee zero capital loss), (2) Sharia-Compliant Sukuk & Islamic Equity Funds, or (3) Low/Medium/High-Growth Global Index Funds. And for employers, monthly scheme contributions are 100% deductible under UAE Corporate Tax Article 28!
Traditional Article 51 Lump-Sum Gratuity vs. Cabinet Decision 96 / DIFC DEWS Savings Scheme
| Feature | Traditional Article 51 Gratuity | Alternative Savings Scheme (Decision 96 / DEWS) |
|---|---|---|
| Funding Timing | Unfunded lump sum paid at end of employment | Funded monthly by employer (by the 15th of each month) |
| Years 1–5 Rate | 21 days Basic Salary / year | 5.83% of Monthly Basic Salary / month |
| Year 6+ Rate | 30 days Basic Salary / year | 8.33% of Monthly Basic Salary / month |
| Minimum Service Cliff | Must complete 1 full year (365 days) | Accrues from Month 1 in DEWS / per scheme rules |
| Investment Compound Returns | 0% (No investment growth) | 100% of investment returns belong to the employee |
| Voluntary Employee Top-Ups | Not available | Allowed up to 25% of total monthly salary |
Calculate Your Baseline Article 51 Gratuity Entitlement
Compare your statutory lump-sum gratuity figure using our official UAE Labour Law Gratuity Calculator.