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A recent post on LinkedIn has caught our attention and struck a nerve: 50% Salary Cuts in the UAE. Are They Legal? The author concluded that yes, such a drastic move is possible, as long as it's fully documented and supported by the employee’s written consent. Without that, it constitutes a clear breach of UAE labour law. What might seem like a selfless and heroic act by employees has however a massive negative impact on their End of Service Benefit (EOSB) Gratuity. Impa

Today’s End of Service Benefit (EOSB) gratuity system has been the standard in the UAE for decades, and everybody knows it very well. It is about to change - but more about that later. First, let's remind ourselves how the old (current) system works: Employees who have completed between 1 and 5 years of service are entitled to a gratuity of 21 days' basic salary per year of service Those with more than five years of service are entitled to 30 days of basic salary as gratuity

The UAE's transformation of its end-of-service benefits (EOSB) landscape is arguably the most significant labour finance reform in the country's recent history. Under Cabinet Resolution No. 96 of 2023, employers can now redirect monthly contributions — instead of accruing a lump-sum gratuity liability — into CMA-approved investment funds. The default option for most workers, and the only permitted option for employees earning AED 4,000 or less, are so-called “ capital guarant

Once a company decides to switch over to the new alternative End of Service Benefit (EOSB) gratuity saving scheme one of the first question everybody has is: what happens to employees’ gratuity that has been accumulated up & until the point of switch-over to the new system?   That gratuity is called “Legacy Gratuity” , and in today’s article we will be exploring this in detail.   UAE Mainland: Frozen Gratuity   Some readers of our last article ("MOHRE Consultation Period to

Many companies and many employees have become aware of the new alternative End of Service Benefit (EOSB) saving scheme – and many of them have something to say.   It is therefore very commendable that MOHRE has been embarking on a large scale exercise to gather feedback on the new system far and wide.     Share your views with “Sharik”,  the UAE’s official feedback portal   For several months already the public has the opportunity to share their views on the new EOSB system w

Good news: GratuityAdviser has launched a FREE training course on the topic of the new End of Service Benefit (EOSB) saving scheme. Change is coming to the UAE employment landscape—and if you're an employer or employee in the private sector, you need to be prepared. We're thrilled to announce that GratuityAdviser is launching a completely FREE introductory course on the UAE's Alternative End of Service Benefits (EOSB) Saving Schemes. In just 10 minutes , you'll gain a co

The UAE capital markets woke up to a new reality on January 1, 2026. The Securities and Commodities Authority (SCA)—the regulator that approved the first wave of End-of-Service Benefit (EOSB) fund managers back in 2024 — has been replaced by the Capital Market Authority (CMA). For the emerging EOSB savings scheme market, this isn't just a name change. It's a signal that the game has fundamentally changed. A More Modern, More Powerful and Stronger Financial Regulator When pion

The UAE's Alternative End-of-Service Benefits Scheme has moved from concept to reality, and employers now face a critical decision: Should you make the switch? And if so, when? And how?   Hence we at GratuityAdviser are pleased to share our practical guide how you can go about navigating this significant transition.     Step 1: Should You Sign Up Now, or Wait?   The scheme is voluntary as of yet, which means you have breathing room—but waiting indefinitely carries downside

For decades, the UAE's gratuity system has been a cornerstone of employment law—but it's always been a bit of a double-edged sword. Employers carried hefty liabilities on their books, while employees worried about whether they'd actually receive their full gratuity if their company hit rough waters. And sometimes things can go wrong, like the recent events at Petrofac have shown. Enter the UAE's new Alternative End-of-Service Benefits Scheme (EOSB), officially launched in O

Dubai, UAE – January 26, 2026 – Lux Actuaries Financial Consulting L.L.C. today announced the launch of GratuityAdviser, a comprehensive advisory platform designed to help UAE employers and employees navigate the transition from traditional end-of-service gratuity benefit to the new investment-based Alternative End-of-Service Benefits Scheme.   With approximately 7.8 million private sector employees potentially affected by the UAE's voluntary Alternative EOSB framework, Gratu