The UAE has introduced a new system for private sector employees and free zone workers to manage their end-of-service benefits, allowing them to invest this amount in investment funds. This scheme is optional and is supervised by the Ministry of Human Resources and Emiratisation and the UAE Ministry of Finance. The aim of this scheme is to increase workers' savings and provide them with the opportunity for secure investments. What are end-of-service benefits? End-of-service benefits are amounts that employees receive upon leaving their job, provided they meet legal conditions. This amount is calculated according to the UAE Labor Law and generally includes 21 days of basic salary for each year of service during the first five years. For years beyond five years, this amount increases to 30 days of basic salary for each additional year. How to calculate your end-of-service benefits? To calculate your end-of-service benefits, you can use the Dubai Development Authority's end-of-service calculator. Simply enter your start and end dates of employment and your basic salary. Remember that this amount is calculated based on your basic salary, and additional allowances such as housing allowance or other benefits are not considered. Important points about calculating end-of-service benefits: End-of-service benefits for those who resign: If you resign, the conditions will be different. If you resign before completing one year of work, you will not be entitled to end-of-service benefits. If you have worked between 1 to 3 years, one-third of 21 days of basic salary will be calculated for each year of service. For 3 to 5 years, two-thirds of 21 days of basic salary, and for more than 5 years, the full 21 days of basic salary will be calculated for each year. End-of-service benefits for those whose contracts are terminated: If your contract is terminated (except for unpaid leave), the calculation will be as follows: For the first 5 years: 21 days of basic salary for each year After 5 years: 30 days of basic salary for each additional year Difference between limited and unlimited contracts: Limited contract: In this type of contract, which is used for projects or specific time periods, the employment relationship automatically ends after the contract period. Unlimited contract: This type of contract is more flexible and is generally more common in the UAE. In these contracts, you can receive your end-of-service benefits based on the duration of your service after leaving your job. Conditions for unpaid leave: It should be noted that unpaid leave is not included in the calculation of end-of-service benefits. Therefore, only the duration of employment that was subject to salary payment will be calculated. Objective of this scheme: The objective of this new scheme is to protect workers' savings through investment funds so that they can have secure investments after their service ends. This scheme is intended for both private sector employees and government employees.