LifestyleEntertainmentFinanceHealthySportsBusinessEducationCar

10 ways your gratuity can grow in UAE under new scheme

Finance

The UAE has introduced a new approach to end-of-service benefits that gives private-sector employees more financial growth and flexibility. Instead of waiting until the end of employment to receive a single payout, workers can now benefit from a professionally managed savings system that grows steadily throughout their career.

The initiative allows monthly contributions to be invested, helping employees build a long-term fund that reflects their years of service and delivers returns over time. For many residents, this marks a major shift from a traditional model toward a more future-focused and financially rewarding approach.

One of the advantages is that contributions accumulate monthly rather than as a one-time lump sum, helping employees grow their savings gradually. Contribution rates depend on total years of service, with employers depositing a percentage of the basic salary into the system each month. These contributions are processed to the investment funds within a set time period, ensuring continuous and reliable growth.

Employees also have several choices when it comes to investment style. Four authorised investment funds are overseen by regulators to ensure transparency and security. Within these funds are different portfolio options, including capital-protected plans, Sharia-compliant solutions, and higher-risk strategies for workers who prefer stronger long-term growth potential. Skilled employees may select a preferred portfolio, while others are automatically allocated a protected option designed to preserve capital.

In addition to employer contributions, employees can boost their savings with voluntary contributions of up to one-quarter of their total yearly salary. These optional payments can be scheduled monthly or added as a one-time transfer at any time of the year. Even better, voluntary amounts earn the same investment returns and can be withdrawn whenever needed, either partially or fully.

The system is built to offer flexibility at the end of employment. Workers can withdraw the full value of their savings and investment returns or choose to keep their funds invested. If they move to another employer, they can stay with the same fund or transition to a different one through their next workplace.

Another major advantage is protection. Funds are independently managed and regulated, which means employees remain protected from business closure or financial difficulty on the employer’s side. Funds remain in secure accounts, ensuring eligible payouts are always available.

The long-term structure benefits employers too. Paying regular monthly contributions allows businesses to plan and manage financial commitments more accurately rather than preparing large end-of-service payouts in one go. It also enhances workplace appeal, encouraging stronger loyalty and long-term retention.

Though originally focused on private-sector workers, eligibility has been widened to include freelancers, self-employed permit holders, expatriates working in government-related entities, and UAE nationals alongside existing pension participation. Joint oversight from the Ministry of Human Resources and Emiratisation and relevant financial regulatory bodies ensures fair management and accessibility for all participants.

After employment ends and standard formalities are completed, the funds can be accessed or transferred through established and straightforward processes.

The new system transforms traditional gratuity into a structured savings approach that supports financial growth, future planning and greater stability. For employees, the benefit now works like an ongoing investment that matures alongside their career. For employers, it reduces pressure, simplifies planning and enhances long-term workforce trust.

AD

AD

Recommended

Want better loans? Check your UAE credit score
Want better loans? Check your UAE credit score
A good credit score opens doors to important financial opportunities, making it easier to secure loans, credit cards, and other financial products. For just Dh10.50, you can check your score and gain a clear understanding of your creditworthiness.Your credit score is a number that reflects your credit history and your ability to repay loans and meet financial obligations. Think of it as a financial report card that shows how reliable you are when it comes to managing money.Why Your Credit Score
UAE: Send money in 10 seconds using mobile numbers
UAE: Send money in 10 seconds using mobile numbers
Sending money within the UAE has become faster and simpler than ever. Instead of entering long account details, you can now make a transfer using only the recipient’s mobile number and complete the transaction in seconds. This convenient experience is now possible through “Aani”, a national instant payment system introduced to modernise the way people in the UAE move money.This digital platform was introduced to provide a faster, hassle-free payment option for everyday financial needs. Whether y
India insurance plans offer big savings for NRIs in UAE
India insurance plans offer big savings for NRIs in UAE
More Non-Resident Indians (NRIs) in the UAE are now choosing insurance plans from India, attracted by lower premiums, long-term financial security and policies that align with the financial needs of families back home. For many, India-based health and life insurance offers the convenience of rupee-denominated coverage and structured benefits that support their household responsibilities in India.Industry data indicates that demand from NRIs in the Gulf region has grown sharply, with buyers in th
Escape High-Interest Debt Fast and Free Up Cash in Dubai
Escape High-Interest Debt Fast and Free Up Cash in Dubai
Struggling with high-interest debt? You’re not alone—and you don’t have to stay stuck. Whether it’s credit cards, personal loans, or surprise expenses, there is a way out. With the right strategy, you can break free from debt faster and take back control of your finances.Step 1: Build a Smart Plan and Stick to ItPaying off debt isn’t something you can do on autopilot. The key is to create a clear repayment plan and stay consistent. Start by listing all your debts, their balances, and their inter
How UAE Residents Can Use ChatGPT to Save Money on Travel, Shopping, and Daily Expenses
How UAE Residents Can Use ChatGPT to Save Money on Travel, Shopping, and Daily Expenses
With artificial intelligence rapidly expanding, tools like ChatGPT are becoming indispensable for both professional and personal use. With over 400 million weekly active users, this AI chatbot is proving to be a powerful resource, and one of its standout applications is helping people save money in practical ways. Here’s how UAE residents can leverage ChatGPT for smarter spending.Finding Cheap FlightsOne of the most popular ways to save is by booking cheaper flights. ChatGPT can search multiple
Invest in Gold from Just 0.1 Grams: Botim and O Gold Bring Fractional Ownership to the UAE
Invest in Gold from Just 0.1 Grams: Botim and O Gold Bring Fractional Ownership to the UAE
In a landmark step for digital finance in the region, O Gold — the UAE’s first homegrown platform for fractional gold and silver ownership — has partnered with Botim, Astra Tech’s flagship AI-powered fintech and communications app, to launch the Middle East and North Africa’s first integrated gold investment feature.This rollout, following a 2023 agreement, positions Botim as the first fintech ecosystem in the MENA region to embed gold investment services directly into its platform. With over 8.
4 Smart Ways Side Hustles Can Boost Your Retirement Savings in the UAE
4 Smart Ways Side Hustles Can Boost Your Retirement Savings in the UAE
At some point, many of us take a hard look at our savings and wonder if we are truly on track for retirement. For me, that wake-up call came in my early thirties when I realized I had only a few thousand dollars saved. Instead of panicking, I turned to side hustles as a way to speed up my savings. Within just two years, I was able to grow my retirement fund by more than $100,000 by combining freelance income with my regular salary. Here are four strategies that helped me — and can work for anyon
Send Money Abroad Like a Pro: 5 Mistakes to Avoid for Safe and Efficient Transfers
Send Money Abroad Like a Pro: 5 Mistakes to Avoid for Safe and Efficient Transfers
Sending money back home from the UAE is more than just a financial task—it’s a meaningful act that supports your family, covers essential expenses, and even helps fulfill dreams. Yet, even experienced senders can make simple errors that delay payments, reduce the amount received, or create unnecessary stress. From incorrect account details to hidden fees and unverified platforms, small mistakes can have big consequences.The good news? With the right information and a trusted partner like Payit R
How to Downsize Your Home for Maximum Profit
How to Downsize Your Home for Maximum Profit
Learning how to downsize your home isn’t just about moving into a smaller space – it’s about unlocking value and simplifying life. For many homeowners, selling a larger property and transitioning to a smaller one can be a smart financial decision.Whether you’re approaching retirement or seeking a lifestyle reset, a well-timed, well-planned downsizing can free up equity, reduce costs, and even generate long-term profit.Strategically timing your saleThe first step to a profitable downsize is knowi
UAE Real Estate Investment Trends: Record-Breaking Growth, High Yields, and Strategic Opportunities Ahead
UAE Real Estate Investment Trends: Record-Breaking Growth, High Yields, and Strategic Opportunities Ahead
The United Arab Emirates maintains its status as a global investment hub, where real estate plays an important role in its growth and diversification.The UAE continues to offer reliable opportunities and reinforces its status as a leading global real estate market, thanks to its strong economic fundamentals and progressive regulations.This report looks into the investment trends shaping the UAE property market in 2026, focusing on performance, investor behavior, and emerging opportunities.Execut
UAE VAT Refund Guide for Tourists: How to Claim Your Savings Before You Travel Home
UAE VAT Refund Guide for Tourists: How to Claim Your Savings Before You Travel Home
Shopping in the UAE is more than a pastime—it’s an essential part of the visitor experience, offering world-class malls, premium brands, and competitive prices. To ensure tourists continue enjoying great value even after VAT was introduced in 2018, the UAE government created a dedicated Tourist Refund Scheme. This programme allows eligible visitors to recover VAT paid on qualifying retail purchases through a seamless tax-free refund process.The system is overseen by the Federal Tax Authority (FT
Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 5 Ultra-High-Yield Stocks
Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 5 Ultra-High-Yield Stocks
These companies provide sustainable income streams to their investors.High-yielding dividend stocks often face skepticism. While a robust dividend yield can signal a greater risk of a future payout cut, this isn't always true. Several higher-yielding dividend stocks deliver consistent, reliable income to investors.Here are five high-quality companies with ultra-high-yielding payouts to buy for safe dividend income in 2026 and beyond.1. Clearway EnergyClearway Energy (CWEN 1.21%) (CWEN.A 1.14%) o
Need cash quick? How a Credit Card Saved Me in a Financial Pinch — Without the Hassle
Need cash quick? How a Credit Card Saved Me in a Financial Pinch — Without the Hassle
Credit cards often get a bad reputation — and for good reason. Overspending, sky-high interest rates, and sneaky fees can turn them into financial traps. But when used responsibly, your credit card can be more than just a tool for shopping — it can actually help you out when you’re low on cash.That’s exactly what happened to me recently. I ran into an unexpected expense — not a huge emergency, but something that needed to be paid immediately. I didn’t want to go through the long process of apply
UAE Cardholders Alert: How to Outsmart the New 3.14% Overseas Transaction Fee
UAE Cardholders Alert: How to Outsmart the New 3.14% Overseas Transaction Fee
Travelling abroad is set to become a little more expensive for UAE cardholders starting September 22, 2026. If you use your UAE-issued credit or debit card internationally—whether it’s in a Paris boutique, a Singapore ATM, or an American online store—you’ll now face a higher fee of 3.14% on each transaction.While that may not seem significant at first glance, it adds up quickly. A Dh5,000 overseas spend could now cost you an extra Dh157 just in fees—an expense many travellers don’t factor into t
Avoid These 5 Costly Mistakes to Protect Your Wealth
Avoid These 5 Costly Mistakes to Protect Your Wealth
Achieving a retirement portfolio worth over $1,000,000 is a milestone worth celebrating—especially considering global data shows that many retirees enter their golden years with far less. If you’re among the successful few who’ve built a seven-figure nest egg, congratulations. But now comes the harder part: managing that wealth wisely so it supports your lifestyle for decades to come.In the UAE—where life expectancy is rising and lifestyle expectations remain high—having $1M may be enough to ret
Credit Cards in the UAE: Are You Really Making the Most of Your Plastic?
Credit Cards in the UAE: Are You Really Making the Most of Your Plastic?
Using a credit card has become second nature for many people in the UAE. Whether it’s paying for groceries, dining out, or shopping online, your card—or linked mobile device—is the tool behind countless daily transactions. But how many of us truly understand interest rates, fees, and the hidden costs of credit cards? Here’s a detailed guide to help you use your credit card wisely and save money.Understanding Interest RatesCredit card interest rates in the UAE typically range between 2% and 4% pe
Buying Term Insurance in Your 40s and 50s? Here’s Why Delaying Could Cost You Big
Buying Term Insurance in Your 40s and 50s? Here’s Why Delaying Could Cost You Big
If you’re in your 40s or 50s and thinking about term insurance, the clock is ticking. Term insurance is calculated based on risk—the older you are, the higher the probability of illness or death, and the higher the premium you’ll pay. Waiting even a year can double your costs, and more importantly, leave your family exposed.Consider a 42-year-old professional in Dubai who recently decided to buy a Rs 1 crore term insurance policy. His annual premium came in at nearly Rs 28,000. Meanwhile, a coll
Crypto Prices Today: Bitcoin Dips to $112,000, Ethereum Trades Around $4,700
Crypto Prices Today: Bitcoin Dips to $112,000, Ethereum Trades Around $4,700
Cryptocurrency markets see modest decline as Bitcoin and Ethereum trade on Monday. At the time of writing, the total crypto market cap saw a marginal decline of 2.59 per cent to $3.88 trillion, while the 24-hour trading volume increased by 58.20 per cent to $134.52 billion.Ethereum ETH was the most trending cryptocurrency. Its price was down by 1.50 per cent to $4,712.10 million, and its 24-hour trading volume was $28.76 billion. Elsewhere VeChain VET was the top gainer. It was up by 4.39 per ce
Amazon Stock Dips: Is Now the Time for Long-Term Investors to Jump In?
Amazon Stock Dips: Is Now the Time for Long-Term Investors to Jump In?
Amazon is no longer just an e-commerce giant. Over the years, it has expanded into cloud computing with Amazon Web Services (AWS), digital advertising, streaming services, audiobooks, music, pharmacy, and grocery retail through Whole Foods, transforming into a diversified tech powerhouse.For a long time, Amazon shares were seen as essential but often too expensive for many investors. With recent market movements, however, the question arises: has Amazon finally reached a price point that makes i
Gold Prices Soar in UAE: Residents Reap Rewards from One-Year Surge
Gold Prices Soar in UAE: Residents Reap Rewards from One-Year Surge
Gold has proven to be a golden investment for UAE residents, as prices have skyrocketed by nearly Dh100 per gram in the past year. Many buyers now say their jewellery purchases in 2024 turned out to be among the smartest financial decisions they’ve made.In the summer of 2024, 22K gold was priced between Dh279 and Dh290 per gram. Fast forward to this week, and the price has crossed the Dh380 mark, reflecting a significant increase that’s captured the attention of both investors and everyday buyer