The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) has established a progressive approach to end-of-service benefits through its Alternative End-of-Service Benefits (ESOB) Scheme. This 2023 initiative, developed alongside the Securities and Commodities Authority (SCA), transforms how employees can build their financial future in the UAE.
What Makes the ESOB Scheme Different?
The traditional gratuity system has been upgraded to offer better growth potential. This voluntary savings programme lets companies invest their employees’ end-of-service benefits in regulated funds, potentially leading to higher returns.
MOHRE-Approved Investment Funds: Your Options
Four major financial institutions now offer investment solutions under this scheme:
- Lunate
- Contact: 02 6927213
- Email: [email protected]
- First Abu Dhabi Bank
- Contact: 02 6920609
- Email: [email protected]
- Daman Investments
- Contact: 04 6109666
- Email: [email protected]
- National Bonds
- Contact: 600 522279
- Email: [email protected]
Each fund provides both conventional and Sharia-compliant investment options, giving employees flexibility in their investment choices.
Understanding Employer Contributions
The contribution structure is straightforward:
- For employment under 5 years: 5.83% of basic monthly salary
- For employment over 5 years: 8.33% of basic monthly salary
Employers must transfer these contributions within 15 days of each month’s start.
Digital Management of Your Investment
Each fund offers digital platforms where you can:
- Monitor your savings progress
- Track investment returns
- Adjust your investment portfolio
- Make additional voluntary contributions
Registration Process Made Simple
Here’s how employers can join the scheme:
- Choose an approved investment fund
- Sign the subscription agreement
- Register eligible employees
- Set up individual savings accounts
Your Benefits at a Glance
- Higher potential returns compared to standard gratuity
- Option to continue investments post-employment
- Access to professional fund management
- Choice between conventional and Islamic investment options
- Regular online monitoring of your investments
Withdrawal and Benefits Access
Upon ending employment, you’ll receive:
- All employer contributions
- Investment returns
- Access within 14 days of employment termination
You maintain the right to:
- Continue investing after leaving your job
- Withdraw voluntary contributions during employment
- Manage your investment strategy
This modern approach to end-of-service benefits showcases the UAE’s commitment to supporting long-term financial security for its workforce. The scheme combines flexibility with professional investment management, creating opportunities for better returns on your gratuity.
Remember: The scheme is voluntary, and employees should carefully review each fund’s terms and conditions before making investment decisions.
JobXDubai 
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