Overview of the New Voluntary EOSB Savings Scheme
Overview of the New Voluntary EOSB Savings Scheme
When:
As of 25th October 2023
What:
MOHRE introduced an Alternative EOSB Savings Scheme
Who:
For UAE Private sector companies, including free zones.
MOHRE – Ministry of Human Resources and Emiratisation EOSB – End of Service Benefits
Current EOSB Scheme vs. Alternative Savings Scheme
|
Considerations |
Current EOSB Scheme |
Alternative Savings Scheme |
|
Contribution Amount |
Employer’s monthly contribution:
|
Employer’s monthly contribution: 5.83% for under 5 years 8.33% for over 5 years |
|
Employee eligibility for the contribution
|
Must complete at least 1 year of service |
Currently, no minimum service period requirement |
|
Disbursement of EOSB |
End of the worker’s service |
End of the worker’s service with a possibility to reinvest |
What next for the Employers?
- Apply for the Alternative Saving scheme’s voluntary subscription.
- Stop existing EOSB accrual; pay out the accrual at end of service.
- Contribute monthly to the savings scheme.
