ABU DHABI: The Ministry of Human Resources and Emiratisation (MOHRE) has unveiled a optional savings system designed to replace the conventional end-of-service gratuity, providing employees with enhanced financial security and investment growth opportunities.
The system introduces four approved investment funds—Lunit, First Abu Dhabi Bank, Dubai Investments, and National Bonds—offering flexible, secure savings solutions for both employers and employees. By integrating these funds, the initiative aims to strengthen the UAE’s labour market appeal, attract global talent, and boost investment activity across the country.
Employers and employees can benefit from a structured four-step registration process:
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Employers select an investment fund and sign a subscription agreement.
An administrative intermediary is appointed to oversee management.
Employees are enrolled, with individual savings accounts created.
Monthly contributions are made by employers, with employees having the option to contribute voluntarily through lump sums or monthly deductions.
The system offers two disbursement pathways upon termination of employment:
Employees can withdraw their accumulated savings immediately.
Alternatively, they may continue investing in the system for further financial growth.
Voluntary contributions can also be partially or fully withdrawn at any time, subject to the system’s payout periods.
The optional system is open to:
Private sector employers and free zone entities
Self-employed individuals and freelancers
Non-citizen government employees
UAE nationals working in the public or private sectors
Employers must calculate monthly contributions based on an employee’s continuous service period, starting from their date of employment, rather than the registration date in the system. Employees may contribute up to 25% of their total salary voluntarily.
This initiative not only bolsters workforce protection but also ensures that employees can grow their retirement savings through investment returns, making it a significant step toward long-term financial stability in the UAE.
