Jurisdictions and savings schemes

UAE Alternative End-of-Service Benefits Savings Scheme

The federal alternative end-of-service system allows participating employers to fund approved investment arrangements instead of building only a traditional gratuity liability for the subscription period.

Reviewed by FinalPay UAE Research Desk: 3 August 2026Educational guidance, not legal advice
Direct answer

The federal alternative end-of-service system allows participating employers to fund approved investment arrangements instead of building only a traditional gratuity liability for the subscription period.

What this guide helps you decide

Understand how the voluntary federal Savings Scheme differs from traditional gratuity.

What still needs evidence

Your jurisdiction, contract terms, dates, wage records and any disputed employer record still need to be verified before the result can be treated as a claim.

Employer participation matters

The scheme is voluntary for employers under the current system. Employees should confirm the enrolment date, fund and contribution records.

Pre-enrolment and post-enrolment service

Traditional gratuity accrued before the scheme start may need to be treated separately from contributions made after enrolment.

Account value is not a simple gratuity estimate

Investment returns, fees and actual account value can change the amount. Use the provider statement rather than predicting returns with a fixed formula.

Review contributions at exit

Compare the employer's contribution record, payroll basic wage and scheme statement. Confirm the withdrawal or continuation process with the provider.

Questions to verify before acting

Answer these from original records. If one answer is uncertain, keep it as an open issue rather than guessing an input.

  1. When was I enrolled?
  2. Which fund or provider holds the account?
  3. What pre-scheme amount was preserved?
  4. Do payroll and scheme contributions match?
  5. What happens to the account when I leave?
  6. Which original record proves the amount or date used?

Frequently asked questions

Is the federal Savings Scheme mandatory for every employer?

No. MOHRE describes it as a voluntary alternative system for participating employers.

Does the calculator predict investment returns?

It should not. Use the actual provider statement.

Do I lose pre-scheme gratuity?

Pre-enrolment accrued benefits require separate treatment under the scheme arrangements and employer records.

Official sources and limitations

These primary sources support the rule or process described above. They cannot confirm your wage, dates, leave balance, employer records or case outcome. Open the live source again before filing a complaint or signing a settlement.

Ministry of Human Resources and Emiratisation (MOHRE)Alternative End-of-Service Benefits SystemThe voluntary federal Savings Scheme and employer enrolment approachUAE GovernmentEnd-of-service benefits for workers in the private sectorTraditional gratuity, the voluntary Savings Scheme and the general 14-day payment ruleMinistry of Human Resources and Emiratisation (MOHRE)Social protection and well-being assuranceSavings Scheme and worker-protection programme context for unpaid entitlements