MoHRE Completes Consultation on the Alternative End-of-Service Savings Scheme
- 21.02.2026
- Posted by: Uwe Hohmann
- Categories: Dubai, Middle East
The MoHRE (Ministry of Human Resources and Emiratisation) has officially completed the evaluation phase for policies related to the Alternative End-of-Service Benefits Savings Scheme. Following weeks of stakeholder feedback and proposals submitted through the UAE Government Portal, the Ministry is now preparing further enhancements to the scheme in the coming period.
What Is the Alternative End-of-Service Benefits Savings Scheme?
Launched under Cabinet Resolution No. (96) of 2023, the scheme offers an optional, investment-based alternative to the traditional end-of-service gratuity system that has been in place across the UAE for decades.
Under the traditional model, employers are required to pay a lump-sum gratuity to employees upon termination of their employment contract. The amount depends on the employee’s basic salary and years of service. While this system has served its purpose, it does not offer employees any opportunity to grow their entitlements over time through investment returns.
The alternative scheme changes this. Instead of accumulating a gratuity liability on their books, employers can choose to direct contributions into approved savings and investment funds. Employees, in turn, stand to benefit from potential investment returns that could exceed what they would receive under the traditional gratuity calculation.
The idea is straightforward: promote a savings culture, give employees more financial security, and reduce the long-term financial burden on employers.
Who Is Eligible to Participate?
The MoHRE has clarified that the scheme is open to a broad range of participants. Eligible individuals include private-sector employees, free-zone employees, investors, self-employed professionals, holders of freelance work permits, and UAE nationals working in both government and private sectors. Non-nationals employed in government entities and affiliated companies are also covered.
Key Themes from the Stakeholder Consultation
The consultation drew feedback from a broad range of participants and highlighted several recurring concerns. Stakeholders called for greater transparency around investment fund performance, including regular reports on returns, fees, and risks, as well as practical side-by-side comparisons between the alternative savings scheme and the traditional gratuity model. The feedback also revealed significant gaps in awareness, with some participants having no prior knowledge of the scheme at all, alongside challenges such as procedural complexity, difficulty selecting the right investment pathway, and uncertainty over the ideal timeframe for maximising benefits.
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