DEWS and UAE End-of-Service Savings Schemes Explained (2026)

DEWS is the DIFC's mandatory replacement for end-of-service gratuity: instead of owing you a lump sum when you leave, your employer pays 5.83% of your monthly basic salary (8.33% once you pass five years of service) into a professionally managed savings plan you own from day one. The mainland now has a voluntary equivalent under Cabinet Resolution 96/2023. Here is how the schemes work, and what they mean for your retirement.

What is DEWS and how does it work?

DEWS, the DIFC Employee Workplace Savings plan, launched on 1 February 2020 and is mandatory for employers in the Dubai International Financial Centre. It converted the old unfunded gratuity promise into funded, monthly contributions:

Employer contribution: 5.83% of monthly basic salary for employees with under 5 years of service, and 8.33% for those with 5 years or more. These percentages mirror the 21-day and 30-day gratuity accruals (21/360 = 5.83%, 30/360 = 8.33%).
Contributions go into a trust-based plan administered by Zurich Workplace Solutions, held separately from the employer's assets.
Money is invested in your choice from around a dozen fund options, from low-risk to growth and including Sharia-compliant funds, all USD-denominated. The default is a low-to-moderate growth balanced strategy.
You can add your own voluntary contributions from salary, and you keep the account whether you change DIFC jobs or leave the country.

The key difference from gratuity is legal and financial: the money already exists, sits in your name outside the company, and compounds. On an AED 20,000 basic salary, the employer pays AED 1,166 a month in your first five years and AED 1,666 a month after that, invested every month rather than promised for later.

What is the mainland Voluntary Savings Scheme (Cabinet Resolution 96/2023)?

In late 2023 the UAE Cabinet approved an alternative end-of-service benefits system for the mainland private sector and non-financial free zones, under Cabinet Resolution 96 of 2023. It is supervised by MOHRE and the Securities and Commodities Authority (SCA), and works like this:

Employers choose to opt in; it is voluntary for them, unlike DEWS in the DIFC.
Once enrolled, gratuity stops accruing. Your gratuity earned up to the switch date is calculated on your basic salary at that date and preserved as an employer obligation, and new money flows as monthly contributions instead.
Contribution rates match DEWS: 5.83% of basic salary below 5 years of service, 8.33% above.
Employees may add voluntary contributions of up to 25% of salary.
Funds are run by SCA-licensed managers, with a capital-guaranteed option and Sharia-compliant options; unskilled workers are placed in capital-guaranteed funds by default.

We cover the scheme in depth in the UAE savings scheme under Cabinet Resolution 96/2023.

How do the three regimes compare?

Feature	Mainland gratuity	DIFC DEWS	Mainland Voluntary Savings Scheme
Status	Default for private sector	Mandatory in DIFC since 2020	Optional, employer opts in
Funding	Unfunded employer liability	Funded monthly into a trust	Funded monthly with licensed managers
Rate	21 or 30 days of basic salary per year	5.83% / 8.33% of basic monthly	5.83% / 8.33% of basic monthly
Investment growth	None	Yes, your fund choice	Yes, incl. capital-guaranteed option
Insolvency protection	Weak	Strong (assets held in trust)	Strong (assets with fund managers)
Employee top-ups	Not possible	Voluntary contributions allowed	Voluntary up to 25% of salary

ADGM has its own employment regime and workplace-savings developments; the detailed three-way comparison is in DIFC DEWS vs ADGM vs mainland gratuity.

Is DEWS better than gratuity for your retirement?

Usually, yes, for two compounding reasons. First, protection: gratuity can evaporate if an employer fails, while DEWS assets are ring-fenced in trust. Second, growth: contributions invested monthly for 10 to 20 years can end up meaningfully larger than the equivalent gratuity formula, though returns are not guaranteed and can be negative in bad years.

A quick illustration. AED 20,000 basic salary, 10 years of service. Mainland gratuity: daily basic is AED 666.67, so years one to five earn AED 70,000 and years six to ten earn AED 100,000, a total of AED 170,000 with zero growth. DEWS at the same salary: about AED 169,900 of contributions (60 months at AED 1,166 plus 60 months at AED 1,666), plus whatever those contributions earned over the decade; at an illustrative 5% annual return the pot would be roughly AED 215,000 to 220,000. Compare your own situation with the gratuity calculator, which projects DIFC DEWS alongside mainland rules.

Either way, remember the scale problem: even a healthy DEWS pot is a fraction of a full retirement need, as shown in why gratuity is not a pension. Use the retirement gap calculator to see what the scheme covers and what you still need to build yourself.

What should you do depending on where you work?

DIFC employee: check your DEWS fund choice (many people never leave the default), consider voluntary contributions, and keep your beneficiary details updated.
Mainland employee whose employer opted into the Voluntary Savings Scheme: understand which fund you are in and confirm your pre-switch gratuity figure in writing.
Mainland employee on standard gratuity: your EOSB is a promise, not a pot. Track what you are owed and invest separately for retirement.

FAQ

Are DEWS contributions taken from my salary?

No. The core 5.83% or 8.33% is paid by your employer on top of your salary, replacing gratuity accrual. Only voluntary top-ups come from your own pay.

Can mainland employers still pay normal gratuity in 2026?

Yes. The Cabinet Resolution 96/2023 scheme is voluntary for employers as of 2026. If your employer has not enrolled, Article 51 gratuity still applies to you.

What happens to gratuity I earned before my employer joined the savings scheme?

It is calculated up to the enrolment date using your basic salary at that date, and your employer owes it to you when you eventually leave. It does not transfer into the fund.

Is DEWS Sharia-compliant?

DEWS offers Sharia-compliant fund options alongside conventional ones. The mainland scheme also requires Sharia-compliant choices among its licensed funds.

What happens to my DEWS money if I leave the UAE?

You can withdraw it, in full or in part, or leave it invested and manage it from abroad. Details in what happens to your DEWS and EOSB when you leave the UAE.

Sources and References

Morgan Lewis, The UAE Alternative Savings Scheme: An Update; Cabinet Resolution 96/2023 rates of 5.83% and 8.33%, the 25% voluntary contribution cap and treatment of accrued gratuity (morganlewis.com)
DIFC, qualifying schemes; DEWS as the mandatory DIFC arrangement since February 2020 (difc.com)
UAE Government portal, end of service benefits for private sector workers; the default Article 51 gratuity regime and the voluntary alternative scheme (u.ae)

This article is for general information and does not constitute financial advice. Scheme rules, fund line-ups and fees change, so confirm current terms with your employer, with Zurich Workplace Solutions for DEWS, or with MOHRE and the SCA for the mainland scheme before making decisions.

Published on 9 September 2026.