Q: I’ve been with my DIFC-registered employer for over two years, but they just enrolled us in DEWS this month (November). Now that I’ve resigned, how does DEWS work, and is it different from the End of Service Gratuity?
A: Great question—let’s break it down for you!
Yes, DEWS (Dubai Employee Workplace Savings) is different from the traditional End of Service Gratuity (EOSG). While EOSG was a lump-sum payment calculated based on your final salary and years of service, DEWS works like a funded savings plan. Employers contribute monthly to your DEWS account, ensuring that the funds grow during your employment.
The DEWS Plan represents a modern approach to end-of-service benefits within the DIFC, transitioning from a traditional defined benefit framework to a funded, professionally-managed defined contribution plan. This innovative initiative not only secures employees’ financial futures but also offers an optional savings component for those seeking to enhance their long-term financial stability. To ensure the plan’s efficiency and reliability, DIFC has partnered with globally recognized service providers. This collaborative structure ensures the DEWS plan aligns with international best practices, delivering robust and transparent financial management for DIFC employees.
Since your employer only enrolled in DEWS recently, your EOSG will be calculated under the old regime (up until the month DEWS contributions started). Any DEWS contributions made from November onward will also be paid out to you, along with any returns on those contributions.
So, in your case:
- Your EOSG will cover your service period before November.
- Contributions to DEWS from November will be paid separately.
It’s a good idea to discuss these details with your HR or payroll team to ensure compliance with DIFC requirements. Since entitlements may vary depending on individual circumstances, it’s also advisable to seek legal assistance to review your documents and clarify your specific rights.
