Boost Your UAE Gratuity with the New Investment Scheme

Feb 16, 2026

89 min

Feb 16, 2026 09:32

How to increase your UAE gratuity with the Alternative End-of-Service Scheme

## Understanding the Alternative End-of-Service Scheme

Introduced in 2023, the Alternative End-of-Service Benefits (ESOB) Scheme offers UAE employees a new way to enhance their gratuity. Instead of receiving a fixed payout, employees can invest their end-of-service benefits in high-performing funds. This initiative, developed by the Ministry of Human Resources and Emiratisation (MOHRE) with the Securities and Commodities Authority (SCA), aims to provide better returns on gratuity through strategic investments.

## Comparing Traditional and Alternative Gratuity

Traditional gratuity is a lump sum based on your basic salary, paid when you leave your job. It only increases if your salary rises. In contrast, the ESOB Scheme involves monthly employer contributions, ranging from 5.83% to 8.33% of your basic salary, into managed investment funds. This option is beneficial if you prefer potential growth over a fixed payout, but it requires employer participation.

## How to Enroll in the Scheme

Employers must submit a request to MOHRE and choose an approved investment fund. They select which employees to register, ensuring previous entitlements are preserved. Employees can track and adjust their contributions via online platforms.

## Investment Fund Options

Employees can choose from various funds, including Ghaf Benefits, Daman Investments, National Bonds, and First Abu Dhabi Bank. These funds offer both conventional and Sharia-compliant structures.

## Voluntary Contributions

Employees can further boost their savings by contributing up to 25% of their annual salary. Contributions can be made through monthly deductions or one-time transfers, and they earn returns like employer contributions. These funds can be withdrawn anytime.

## What Happens When You Leave

Upon leaving a job, employees receive all employer-paid contributions and investment returns. They can withdraw the funds or keep them invested. If moving to a new job, they can transfer their savings to the new employer's chosen fund.

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