UAE February 16th, 2026: The United Arab Emirates is proceeding with the implementation of the modernization of the end-of-service benefits of the manner of treatment of employees, as a recently expanded digital consultation of the Alternative End-of-Service Scheme is initiated by the Ministry of Human Resources and Emiratisation (MoHRE). The optional end-of-service scheme does not offer any alternative to the old system of gratuity, but instead requires employers to make monthly payments into approved funds. The authorities indicate that feedback will be used to enhance transparency, awareness, and financial viability of workers in the long term in the UAE.

The MoHRE Is Consulting On The End-of-Service Scheme

The ministry has also finished the assessment part of the policies concerning the Alternative End-of-Service Scheme and it is currently collecting the feedback of the people and the stakeholder to further polish the system more. The online consultation that can be found in the UAE Government Portal (Sharek.Emarat) is a permanent resource that will continue to receive inputs until February 28 2026.

According to the officials of MoHRE, the contributions made in this consultation will contribute to the formation of the policy decisions and increase the confidence of both workers and employers in the new scheme.

The Major Proposals Of The Participants

Stakeholders and the general population were making various recommendations on how to make the end-of-service scheme stronger and they included:

Increased openness when it comes to the performance of investment funds wherein returns, fees and risks are frequently reported.
Comparative analyses that indicate the relative measures of returns under the alternative scheme in comparison to the conventional lump-sum gratuity benefits.

Another aspect measured during the consultation was the level of awareness about the optional savings-based approach, where it was discovered that some of the employees and the employer are not yet acquainted with the specifics of the alternative system.

Investing In End-of-Service Benefits

The main aspect of the new structure is that the end-of-service benefits of the employees may be invested in approved savings funds that may generate returns over time, as opposed to the payment of the end benefits as a single lump sum gratuity on termination of employment.

The respondents of the consultation rated the idea of putting contributions in these funds as either an excellent idea or inappropriate or incomprehensible. The consultation also covered issues that could impede the implementation of the end-of-service scheme such as low awareness levels, the complexity of the processes, preference to the conventional forms of gratuity, and the confusion over the selection of an appropriate investment strategy.

Increasing Awareness And Participation

Feedback collected during the consultation has revealed the desired communication channels that can be used to market the end-of-service scheme by MoHRE that encompass the official site of the Ministry, social media channels, workshops, and specialized email or SMS messages.

Other recommendations to be suggested by the participants were that the clearer procedures, flexible contribution options and government guarantees would assist in motivating more employers and employees to join.

In line With Greater UAE Objectives

MoHRE highlighted that the results of the consultation will serve to facilitate the improvements of the policies to safeguard the rights of employees and maintain the dynamic labour market in the UAE. The ministry also reported that the end-of-service scheme is among the larger plans to encourage the financial security of the workers and a stable work environment in the country.

Introduced under Cabinet Resolution No. 96 of 2023, the optional scheme is provided as an alternative to the old system of gratuities and will allow companies to make monthly deposits to the funds authorized by the program, including those of Lunate, First Abu Dhabi Bank, Daman Investments, and National Bonds.

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