Alternative end of service savings scheme
Can we put gratuity into a savings scheme instead of paying at the end?
The situation
An optional alternative end of service savings scheme exists under Cabinet Resolution 96 of 2023, where employers pay monthly contributions to an approved fund.
The law
- Cabinet Resolution 96 of 2023: Optional alternative to end of service gratuity
What it means for you
Contributions are invested for employees and paid out at exit. Example: a company with 30 staff may prefer monthly contributions to avoid a large gratuity bill later. Check fund options and contribution rates on MOHRE before joining.
What to do
- Review the scheme rules on MOHRE.
- Compare cost with gratuity accrual.
- Choose an approved fund.
- Inform employees in writing.
We can do this for youPayroll compliance: WPS salary runs, end of service gratuity, final settlement and payroll records: AED 95