July 2026

1. DEWS replaced end-of-service gratuity (ESG) in the DIFC on 1 February 2020, introducing a funded workplace savings model where employers make monthly contributions into a regulated trust rather than accruing an unfunded gratuity liability.

2. Mandatory employer contributions are based on basic salary, at 5.83% per month for employees with less than five years’ service and 8.33% per month thereafter, with employees able to make additional voluntary contributions.

3. Following the March 2024 DIFC Employment Law amendments, employers may also need to make DEWS top-up contributions for eligible UAE and GCC national employees where GPSSA benefits fall below the DEWS equivalent and the statutory threshold is met.

4. DEWS offers greater transparency and portability than the legacy ESG regime, with benefits funded monthly, professionally invested and generally capable of remaining invested or being withdrawn when an employee leaves employment.

5. Employers must enrol eligible expatriate employees after probation and remit contributions by the 21st of the following month, making timely onboarding and payroll administration critical to compliance.

6. Employers may adopt a DFSA/DIFC-approved Qualifying Alternative Scheme (QAS) instead of the DEWS master trust, provided it meets or exceeds DEWS contribution, governance and funding requirements.

7. How 10 Leaves can help: We support DIFC employers with DEWS implementation and ongoing administration, including employee enrolment, monthly contribution processes, compliance monitoring, employment contract reviews, policy updates and QAS structuring, providing a single point of contact for both operational and regulatory requirements.

DEWS (DIFC Employee Workplace Savings)

 

The DIFC Employee Workplace Savings (DEWS) Plan is a mandatory, funded workplace savings scheme that replaced end-of-service gratuity (ESG) for expatriate employees in the Dubai International Financial Centre on 1 February 2020. DIFC-registered employers must contribute 5.83% of basic salary per month for employees with less than five years of service, and 8.33% per month thereafter, into the DEWS master trust or an approved Qualifying Alternative Scheme. Following the DIFC Employment Law amendment of March 2024, employers must also make monthly top-up contributions for eligible UAE and GCC national employees where their GPSSA pension contribution falls short of the DEWS equivalent, subject to an AED 1,000 minimum threshold. DEWS is administered by Equiom as master trustee, Zurich as plan administrator, and Mercer as investment adviser.

What is DEWS in the DIFC?

DEWS is a funded defined contribution savings plan designed to modernise how end-of-service benefits are managed in the DIFC and to align employer obligations with global best practice. Instead of carrying an unfunded gratuity liability on their balance sheet, employers pay monthly contributions into a segregated trust account where employees can choose from a range of investment options.

For expatriate employees of DIFC entities, DEWS replaced the historical lump-sum ESG regime with a transparent, fully funded structure that accrues month by month. Employees can also make voluntary contributions via payroll deduction to build additional long-term savings alongside the mandatory employer funding.

DEWS contribution structure

Under DEWS, employers must calculate contributions on the employee’s monthly basic salary, with the statutory minimum rates determined by continuous length of service in the DIFC. For the first five years of service, the minimum contribution is 5.83% of basic salary per month, increasing to 8.33% per month thereafter. Employers may choose to contribute at higher rates under their internal policies or employment contracts, as long as they meet or exceed these statutory minimums.

Employees may elect to contribute part of their salary into DEWS as voluntary savings, typically via automatic payroll deduction with no minimum amount. These voluntary contributions vest immediately to the employee and are invested into the same fund range, allowing them to build a personal savings pot in parallel with the mandatory end-of-service benefits.

UAE and GCC nationals – DEWS top-up

UAE and GCC nationals working in the DIFC generally do not participate in DEWS by default because they accrue retirement benefits through the GPSSA regime. However, the March 2024 DIFC Employment Law amendment introduced a new top-up requirement for eligible GCC nationals. Where the statutory GPSSA contribution for a GCC national employee is lower than the equivalent DEWS minimum contribution, the employer must fund the shortfall into DEWS, provided the difference is greater than AED 1,000.

This top-up obligation ensures that GCC nationals receive broadly equivalent funded benefits to expatriate colleagues, without displacing their underlying GPSSA entitlements. UAE and GCC nationals remain outside the core DEWS enrolment unless explicitly brought in under a Qualifying Alternative Scheme or separate employer policy.

How DEWS compares with end-of-service gratuity

The move from ESG to DEWS fundamentally changes when and how end-of-service benefits are funded and managed. Under the legacy gratuity model, employers accrued a book liability and paid a lump sum only on termination, with no investment growth for the employee. Under DEWS, contributions are funded monthly into a trust, professionally invested, and visible to employees throughout their employment.

DEWS vs. pre-2020 ESG

 

Eligibility, enrolment and deadlines

All eligible expatriate employees of DIFC-registered entities must be enrolled into DEWS or an approved Qualifying Alternative Scheme once they complete probation. Employees on probation are excluded from contributions until they successfully complete their probationary period, after which contributions are due from the end of that period.

Employers must register new eligible employees within the timeframe set out in DIFC guidance and ensure contributions are backdated to the employee’s commencement date or the DEWS go-live date, whichever is later. Monthly contributions must then be transferred to the DEWS trustee bank account by the 21st of the month following the month of accrual, for example, May contributions are due by 21 June.

Scheme governance, fees and default fund

DEWS operates as a master trust governed by DIFC and DFSA rules, with a clear allocation of roles between trustee, administrator and investment adviser. Equiom acts as master trustee, Zurich Workplace Solutions as administrator, and Mercer as investment adviser overseeing the underlying investment funds.

The default investment option carries an all-in annual charge of approximately 1.33% of assets under management, covering trustee, administration and investment management fees. There are currently no entry, exit, switch or fixed annual account fees for members, making the default option a simple, predictable-cost choice for most employees.

Qualifying Alternative Schemes (QAS)

DIFC employers are allowed to operate a Qualifying Alternative Scheme instead of participating in the core DEWS master trust, subject to regulatory approval. To obtain a Certificate of Compliance, the QAS must match or exceed the DEWS minimum contribution rates and provide at least monthly funded contributions into a segregated arrangement.

A compliant QAS must also meet governance and regulatory standards, including having the operator, administrator, investment adviser and fund manager each regulated by a recognised regulator. Employers typically consider a QAS when they need group-wide alignment across multiple jurisdictions or wish to integrate DEWS-equivalent benefits into an existing global pension platform.

Employee exits, vesting and portability

When an employee leaves a DIFC employer, their DEWS account balance represents the total of employer contributions (subject to vesting), voluntary contributions and any investment gains or losses. Vested benefits can either be paid out as a lump sum or left invested within the scheme, depending on the employee’s preference and the plan rules at the time.

Employer contributions typically vest after one year of continuous service, while voluntary employee contributions vest immediately and are always fully owned by the employee. This structure encourages long-term retention while still allowing employees flexibility to manage their savings when they change roles or leave the DIFC.

FAQ – Frequently asked questions about DEWS

What is DEWS in the DIFC?

DEWS, the DIFC Employee Workplace Savings Plan, is a mandatory funded savings scheme that replaced end-of-service gratuity for expatriate employees of DIFC-registered entities from 1 February 2020, with monthly employer contributions into a trust managed by Equiom, Zurich and Mercer.

What are the DEWS contribution rates in 2026?

DIFC employers must contribute 5.83% of an employee’s monthly basic salary for the first five years of continuous service and 8.33% per month thereafter, with employees able to make additional voluntary contributions.

Who is exempt from DEWS?

UAE and GCC nationals are not enrolled by default because they accrue benefits under the GPSSA; however, employers must make top-up contributions for eligible GCC nationals where GPSSA benefits fall short of the DEWS equivalent and the shortfall exceeds AED 1,000, and employees on probation are excluded until probation is complete.

When are DEWS contributions due each month?

Employer contributions must be transferred to the DEWS trustee bank account by the 21st of the month following the month of accrual, meaning contributions for a given month are due by the 21st of the next month.

What happens to DEWS savings when an employee leaves?

On leaving, employees can receive a payout of their vested DEWS benefits or elect to leave their savings invested within the qualifying scheme, with employer contributions vesting after one year and voluntary contributions vesting immediately.

Can a DIFC employer use a scheme other than DEWS?

Yes, employers can apply for a Certificate of Compliance to run a Qualifying Alternative Scheme that matches or exceeds DEWS contribution rates, funds benefits at least monthly and is overseen by appropriately regulated service providers.

What is the DEWS default fund charge?

The default fund typically carries an all-in annual fee of about 1.33% of assets under management, with no separate entry, exit, switch or fixed annual account charges for members.

What are the penalties for failing to register or contribute to DEWS?

The DIFC Authority may levy fines for non-compliance with DEWS registration and funding obligations, and sustained failure can affect a firm’s commercial licence standing, especially where employees are not enrolled on time or contributions are not remitted by the due date.

Section: How 10 Leaves can help you stay DEWS‑compliant

We act as your outsourced DEWS administrator so you can focus on running your DIFC business, from initial scheme selection and enrolment through to monthly contribution processing and ongoing compliance monitoring. Our team advises on DEWS implementation, QAS structuring, documentation updates and employment contract alignment, giving you a single point of contact for both regulatory and operational questions.

Ashwin Krishnan is the Manager, ADGM Operations of 10 Leaves Limited. Over several years, he has advised clients on establishing non-regulated businesses across the UAE, spanning DIFC and ADGM formations, Special Purpose Vehicles (SPVs), Foundations, and commercial structuring. His expertise extends to navigating mainland and free zone setups across Dubai and the Northern Emirates, as well as facilitating corporate bank account openings.