Saving Opportunities in the UAE: End of Service Benefit Scheme

Saving Opportunities in the UAE: End of Service Benefit Scheme

- Jonathan Kelly

In the United Arab Emirates (UAE), a relatively new Government initiative savings plan for employees in both private and freezone sectors is available, through which workers can invest their end-of-service benefits (EOSB) in order to accrue long-term savings. This untapped opportunity offers benefits to employers and their employees alike, with no minimum salary requirement any company or worker in the UAE can start making more from their end of service. The initiative is expected to improve private sector competitiveness and attract more talent into the region.

What is End of Service in the UAE?

The end of service benefit is a mandatory payment that is made to employees in the UAE, should they have completed a minimum of 1-year of employment. Once eligible, employers will contribute 5.83% of their monthly basic salary to their end of service for the first 5 years of employment, and 8.33% for every year after.

How do I register for the End of Service Benefit Scheme?

The end-of-service benefit saving scheme, unlike general end of service accrual, is not mandatory, but will require employers or employees to register with the Ministry of Human Resources and Emiratisations (MOHRE), should they opt to take part in the plan.

Can I add more into my saving scheme?

The plan permits for voluntary contributions from both the employer and employees, should they wish to add more into their investment pots. If an employer offers their employees additional contributions to their end of service investments, this will further their attractiveness as an employer of choice for skilled talent looking to work in the region.

What are the benefits of the saving scheme?

Employer benefits

  • Paperless administration
  • A simple and effective way to meet your EOSB liabilities
  • Attract and retain talent
  • Option to add an Executive plan
  • Good corporate governance
  • Protection under trust
  • Can protect against inflation
  • Ring-fenced end-of-service account
  • Flexible financing options
  • Cost effective solution
  • A variety of investment options
  • Better cash-flow management

Employee benefits

  • Easy to use self-service platform
  • Online access to information and data
  • Financial Wellness platform
  • Simple and effective way to save
  • Easy access to global fund houses with institutional class funds
  • End-of-service funds segregated from company assets
  • Enhanced financial security and opportunity for investment of savings
  • Cost effective and easy to do
  • Flexible access to savings
  • Close the account or transfer to an individual option if you leave your current employer

Can you help me manage my savings?


Savings schemes aim to ensure that employees receive their end-of-service benefits. Whether companies opt to join the UAE Government savings plan or look at alternative options for EOSG employee benefit plans, end-of-service gratuity is mandatory for all UAE employers to provide to its departing employees and therefore, investing these payments into a fund will offer a form of savings and certainty for both the company and employee to ensure the EOSB are protected. 

Sovereign PPG, through our Guernsey office, offers a much wider EOSB investment spectrum to our clients. We offer varying tailored plans depending on your saving needs. Whether you want us to completely allocate your savings depending on your saving goals, or manage yourself, our platform can tailor fit your aims.

How can Sovereign PPG Help?

An end of service benefit scheme is the opportunistic way to attract talent to your business by offering your employees the best investment portfolios and the ability to make more from their end of service and savings. For those running a business or working in the UAE, now is the perfect time to develop and implement a saving scheme.

Corporate compliance can be a complex with regulatory requirements. This is where the expertise of a professional corporate services provider becomes invaluable. Sovereign PRO Partner Group has decades of experience assisting businesses with best practices and employee management onboarding, maintenance and offboarding requirements such as Payroll and EOSG calculations

If you need assistance with this or with any other related company setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Saudi Arabia, Bahrain, Oman or Qatar, then please do get in touch with us on +971 (0)4 456 1761 for Dubai, or email us at info@propartnergroup.com or complete the contact form below and we will be delighted to assist you.

Set up an end of service saving scheme

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