This page explains the DIFC end of service gratuity and its legal framework, covering key aspects like contribution types, employee eligibility, and the role of DEWS (DIFC Employee Workplace Savings Plan).
It offers crucial information for individuals seeking clarity or legal assistance regarding their rights and obligations in 2025.
Contact our expert labor law firm in UAE. Click the WhatsApp icon below.
Table of Contents
DIFC End of Service Gratuity
The end of service gratuity in DIFC is designed as a progressive workplace savings plan, transitioning from a defined benefit arrangement to a professionally managed defined contribution plan.
This restructuring is facilitated by the DEWS, which allows employees to easily manage their benefits and withdraw funds upon leaving the service.
Employers must contribute to DEWS for each employee’s benefit, except for certain exemptions defined by the law.
The exemptions include UAE and GCC nationals enrolled in the GPSSA (General Pension and Social Security Authority).
The contributions to DEWS for non-exempted employees must equal the core benefits, calculated as follows: Up to 5 years: 5.83% of the basic salary, and Over 5 years: 8.33% of the basic salary.
Employers can also contribute more to attract and retain talent, but they are not legally required to exceed the statutory minimum.
Moreover, the DIFC Employment Law requires employers to ensure that they contribute to the GPSSA on behalf of their UAE/GCC national employees.
If an employee is a UAE or GCC national and the employer’s pension contribution to the GPSSA is less than the core benefits, the employee is entitled to a top-up contribution for the difference.
This top-up ensures the employee receives the same benefits as they would if they were not a UAE or GCC national.
It will be paid to the qualifying scheme, provided the monthly top-up is at least AED 1,000.
Voluntary Contributions
Non-exempted employees can make voluntary contributions through salary deductions, enhancing their retirement savings.
These contributions are optional but provide employees with additional financial security.
Accrued Gratuity Transfer
Non-exempted employees who have accrued gratuity before the introduction of DEWS (i.e., before February 1, 2020) may transfer this amount into the DEWS plan.
This transfer, however, is subject to the employee’s written consent.
If the employee agrees, the employer is relieved of further gratuity obligations for past service, which are calculated as:
Twenty-one (21) days of Basic Wage for each of the first five (5) years of service and thirty (30) days of Basic Wage for each additional year.
The total cannot exceed two (2) times the Annual Wage. The Basic Wage must be at least fifty percent (50%) of the Annual Wage, with the daily rate based on a 365-day year.
For multiple fixed-term contracts, total service is based on consecutive contracts or a new contract offered at the end of the current one.
For more details on the gratuity calculations, check our article on the DIFC Gratuity Calculator.
Legal Services Related to End of Service Gratuity in DIFC
Our labor lawyer in Dubai specializes in providing legal services related to DIFC end of service gratuity.
Our services cater to employers and employees, offering guidance in navigating DEWS’s complex regulations and the applicable laws.
Legal Advice on DEWS Compliance
We offer comprehensive advice to employers to ensure compliance with DEWS regulations, including mandatory contribution requirements, employee eligibility, and voluntary contribution options.
We also assist employers with understanding the legal implications of transferring accrued gratuity to DEWS.
Employee Gratuity Rights and Protection
We provide expert legal counsel to employees on their rights under DIFC laws.
This includes guidance on maximizing benefits under DEWS and ensuring they receive the correct gratuity payment or any applicable top-up contributions.
We also help employees understand the transfer of gratuity entitlements and safeguard their interests.
Gratuity Dispute Resolution and Litigation
If there are disputes regarding gratuity payments, voluntary contributions, or any aspect of DEWS, our experienced lawyers offer dispute resolution services.
This includes arbitration and litigation to ensure our clients receive fair and timely compensation.
Our legal team is equipped to address concerns regarding end-of-service gratuity for employers and employees in the DIFC.
We ensure your rights are protected, and obligations are met according to the latest legal framework.
Read about DIFC employment law termination and find the best DIFC court employment law services.
Also, learn about DIFC employment lawyers services and top law firms in DIFC UAE.
FAQs about DIFC Employment Law End of Service Gratuity
Conclusion.
Through the DEWS plan, the DIFC end of service gratuity system offers a modern, flexible approach to employee retirement benefits.
Understanding the mandatory and voluntary contributions and the transfer of gratuity entitlements is crucial for employers and employees in DIFC.
If you need legal advice or representation regarding DIFC gratuity matters, our law firm offers expert support tailored to your needs.
Contact our labor law firm in UAE for expert help. Click the Whatsapp icon below.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
