Objective:
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
Target Group:
• Employees in private-sector establishments and free zones in the UAE
• Natural persons for investment purposes, including self-employed individuals and those with freelance work permits
• UAE citizens working in both government and private sectors
• Non-citizen employees working in government entities and their affiliated companies
Decision Making:
Analysis of consultation results aims to develop policies for protecting employee rights and fostering a sustainable work environment. Opinions and suggestions are taken into consideration to align with government directives, ensuring labour market stability and the sustainability of labour rights in the UAE.