This article provides a detailed overview of the DIFC Employment Law End of Service Gratuity.
It covers key aspects, including employee eligibility, contributions, voluntary payments, and the role of the DIFC Employee Workplace Savings Plan (DEWS).
Whether you’re an employee or an employer in the DIFC, this article will help you understand your rights and obligations regarding end-of-service gratuity in 2025.
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Table of Contents
DIFC Employment Law End of Service Gratuity Rules
The DIFC Employment Law End-of-Service Gratuity is a workplace savings plan that has evolved over time.
It transitioned from a defined benefit system to a defined contribution plan, aiming to provide more flexibility and security for employees.
The plan is managed by the DIFC Employee Workplace Savings Plan (DEWS), ensuring that employees can easily access and manage their benefits.
Contribution Types
Employers are required to contribute to the DEWS for eligible employees, except for those who fall under specific exemptions.
Exemptions include UAE and GCC nationals who are part of the General Pension and Social Security Authority (GPSSA).
For non-exempt employees, employers must contribute as follows: For employees with up to five years of service, the contribution is 5.83% of the basic salary.
For employees with more than five years of service, the contribution is 8.33% of the basic salary.
Employers can choose to contribute more than the minimum, though it’s not required. This allows companies to attract and retain talent with enhanced benefits.
Exemptions and Top-Up Contributions
UAE and GCC nationals are eligible for benefits under the GPSSA. If an employer’s contribution to the GPSSA is less than the DEWS core benefits, the employee is entitled to a top-up contribution.
This ensures that UAE and GCC nationals receive equivalent benefits to non-exempt employees, with the top-up amount paid into the relevant pension scheme.
Making Optional Contributions
Non-exempt employees can also make voluntary contributions through salary deductions.
While these contributions are optional, they provide additional financial security for retirement, allowing employees to enhance their savings.
Transfer of Accrued Gratuity
Employees who accrued gratuity before the introduction of DEWS (prior to February 1, 2020) can transfer these funds into their DEWS account.
However, this transfer requires the employee’s written consent. If accepted, the employer is no longer obligated to provide gratuity for the period prior to the introduction of DEWS.
The gratuity amount is calculated as follows: For the first five years, it is 21 days of basic wage per year. For each additional year, it is 30 days of basic wage.
The total accrued gratuity cannot exceed twice the annual wage.
Learn about the DIFC Gratuity Calculator and the End-of-Service benefits in the UAE.
Legal Services Related to DIFC End of Service Gratuity
Our law firm specializes in providing expert legal services related to DIFC Employment Law End of Service Gratuity.
We assist both employees and employers in understanding their rights and obligations under DIFC regulations.
Legal Consultation and Advice
We offer comprehensive legal consultation to employees and employers, ensuring full compliance with DIFC Employment Law.
Our team helps clients navigate the complexities of the End-of-Service Gratuity, including contributions, voluntary payments, and exemptions.
Dispute Resolution
If any disputes arise regarding the payment of gratuity or the interpretation of the DEWS contributions, our lawyers provide expert dispute resolution services.
We ensure that our clients’ interests are protected through negotiations, mediation, or legal proceedings.
Document Review and Compliance
Our legal team assists in reviewing contracts and workplace policies to ensure they align with DIFC Employment Law.
This includes ensuring that all gratuity contributions are properly calculated and that voluntary contributions are correctly managed.
Employee Rights Enforcement
We represent employees seeking to enforce their rights under the DIFC Employment Law, particularly in cases involving gratuity payments and other related matters.
Whether dealing with discrepancies in contributions or disputes over past service gratuity, we offer expert legal support.
FAQs about End of Service Gratuity in DIFC
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A law graduate and legal writer focusing on UAE law, he became known for his ability to clarify complex legal concepts through his writings. His work simplifies the intricacies of the legal landscape in the Emirates, helping both locals and expatriates navigate their legal concerns.
