The UAE Ministry of Human Resources and Emiratization (MHRE) has invited the public to provide their opinions and suggestions regarding the Alternative Savings Scheme (Savings Scheme). The public consultation aims at refining the existing framework. Comments can be provided until February 28, 2026 via https://sharik.ae/en.

Under the Savings Scheme, companies operating in the private sector, including those that fall within the jurisdiction of the MHRE, and companies operating in free zones (with the exception to the Dubai International Financial Centre and the Abu Dhabi Global Market) can choose to participate in the Savings Scheme instead of paying end-of-service gratuity to their employees.

The contribution rates to the Savings Scheme for full-time employees, which reflect the current accrual rate of statutory end-of-service gratuity, are

• 5.83% of the employee’s monthly basic salary if the period of service is less than five years; and
• 8.33% of the employee’s monthly basic salary if the period of service exceeds five years

An employee can also make voluntary contributions into the Savings Scheme. These contributions can either be deducted by the employer from the employee’s salary and transferred on the employee’s behalf into the Savings Scheme, or the employee can transfer the amounts directly to the Savings Scheme through one of the approved providers. Any voluntary contributions made by the employee should not exceed 25% of their annual salary.

The MHRE has approved...

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