End-of-service benefits in the UAE: what employers owe and how a funded scheme works

End-of-service benefits (EOSB) are the terminal gratuity payment that UAE employees receive when they resign or are terminated, under UAE labor law. For the employer, that payment is a liability that grows with every year of service. Some employers now fund it in advance through a savings scheme. HAYAH, a UAE-licensed life and health insurance provider regulated by the Central Bank of the UAE (hayah.com), offers one such scheme, called Your Employee Saver (YES).

What end-of-service benefits are

End-of-service benefits are owed to eligible employees at the end of their employment. UAE labor law sets who qualifies and how the payment is worked out, so an employer should read the current rules on the official UAE government portal or ask a licensed advisor before planning around any figure.

HAYAH describes the traditional approach as a lump-sum payment at exit. A lump sum at exit is the timing question an employer has to plan for.

Why employers look at funding the liability

  • The liability builds for every eligible employee and falls due when each person leaves.
  • Several exits close together can create a cash demand the business did not plan for.

A funded scheme moves the planning earlier. The employer sets money aside during employment instead of finding it at exit.

How a funded end-of-service scheme works

  1. The employer chooses a provider and sets up the scheme.
  2. The employer defines which employees are eligible and what contributions and benefits apply.
  3. The scheme holds the savings in the chosen investment option.
  4. HR and employees can follow the balance through an online portal.

How HAYAH Your Employee Saver (YES) works

According to hayah.com, checked on 3 November 2026, HAYAH Your Employee Saver (YES) is built for employers who want to ringfence their end-of-service gratuity liabilities. HAYAH describes YES with these features.

  • The employer defines eligibility for contributions, benefits and the available investment options.
  • Savings are held in US dollars (USD).
  • HR teams and employees each have a dedicated, secure portal, available around the clock.
  • The arrangement is a contract with an insurer regulated by the Central Bank of the UAE, without extra legal structures.
  • Employee onboarding and ongoing management are paperless.

HAYAH recommends YES for businesses with at least 20 employees that want to provide enhanced benefits, and where the business and most of its employees are located in the UAE or the wider GCC. HAYAH also publishes an end-of-service benefits calculator for employers at eosb.hayah.com.

Questions to ask any provider of an end-of-service scheme

  1. Who regulates the provider, and which licence covers the scheme?
  2. What are the eligibility rules, and who sets them?
  3. Which investment options exist, and what are the fees?
  4. Can the employer and the employees see the balance online?
  5. What happens to the savings when an employee leaves?

A note on this article

This article is for informational purposes only and does not constitute financial, legal or insurance advice. Labor rules, plan terms and fees change regularly. Always verify current requirements with the official UAE government portal or a licensed advisor before making decisions. HAYAH is licensed and regulated by the Central Bank of the UAE (CBUAE).