Savings Scheme or gratuity? See both figures.

MOHRE runs a voluntary alternative to end-of-service gratuity: instead of accruing a payout, your employer pays a monthly percentage of your basic salary into an approved investment fund. This compares the contributions that build up against what you would have earned under the traditional rules.

AED
Employer contributions are 5.83% of basic salary a month below five years of service, and 8.33% above it.

Traditional gratuity

AED 35,000

Scheme contributions

AED 34,980
Months below five years
60
Gratuity is ahead by
AED 20

Contributions only. Your fund's investment returns are on top of this figure and depend on the portfolio your employer selected, so no return is assumed here.

What the scheme changes

  • It is voluntary and chosen by the employer, not by you. Employers may enrol everyone or only certain groups.
  • Once you are enrolled, traditional gratuity stops accruing for you, and anything you had already built up must be calculated and settled under the law.
  • You receive the contributions and any returns within 14 days of leaving, and you may leave the money invested instead of withdrawing it.
  • You can add voluntary contributions of your own, up to 25% of your total wage.
  • It covers the private sector and free zones, and is regulated jointly by MOHRE and the Securities and Commodities Authority.

Where these figures come from

Last checked against the source: 21 August 2026

Scheme rules are Cabinet Resolution No. 96 of 2023 and Ministerial Resolution No. 668 of 2023, summarised on the UAE government page above.

What this does not cover

  • Investment returns, which depend on the fund and portfolio your employer selected.
  • Fund fees and any charges the investment provider applies.
  • Voluntary contributions you make yourself, which are capped at 25% of your total wage.