Basic salary component only (excl. allowances)
DEWS Rate: 5.8% of basic salary
Employer contribution, paid monthly into DEWS scheme
Monthly
AED 1,458
Annual
AED 17,490
Rate
5.8%
| Years | DEWS (accumulated) | Gratuity (non-DIFC) | Difference |
|---|---|---|---|
| 1 year | AED 17,490 | AED 17,500 | -AED 10 |
| 3 years | AED 52,470 | AED 52,500 | -AED 30 |
| 5 years | AED 87,450 | AED 87,500 | -AED 50 |
| 10 years | AED 174,900 | AED 212,500 | -AED 37,600 |
What is DEWS?
DEWS (DIFC Employee Workplace Savings) is a defined contribution savings scheme that replaced end-of-service gratuity for DIFC employees. Launched in February 2020, employers contribute 5.8% of each employee's basic salary monthly into the scheme. Employees can choose from several investment options.
How does DEWS compare to gratuity?
DEWS contributions are invested and can grow over time through investment returns, while gratuity is a lump sum calculated based on basic salary and years of service at the time of leaving. DEWS provides more transparency as employees can track their savings balance in real time. For longer-serving employees, DEWS plus investment returns may exceed traditional gratuity.
Who is eligible for DEWS?
All employees working for entities registered in the DIFC who have completed 3 months of continuous service are eligible. DEWS is mandatory for employers in the DIFC. Employees cannot opt out, but they can choose their investment risk profile (conservative, balanced, or aggressive).
Note: DEWS is specific to DIFC. Non-DIFC employees in the UAE receive end-of-service gratuity under MOHRE labour law.
How employment costs work in the Dubai International Financial Centre
What is the DIFC?
The DIFC (Dubai International Financial Centre) is a special financial free zone in Dubai with its own legal system based on English common law. It has its own courts, employment laws (DIFC Employment Law No. 2 of 2019), and regulator (DFSA). Companies in banking, insurance, asset management, and fintech operate here.
What is DEWS and how does it work?
DEWS stands for DIFC Employee Workplace Savings scheme. It replaced the traditional end-of-service gratuity system in February 2020. Employers contribute 5.83% of the employee's basic salary each month (for those with under 5 years of service) or 8.33% (for 5+ years). For example, on a basic salary of AED 20,000, the employer pays AED 1,166 per month into the DEWS fund.
How does DEWS differ from mainland gratuity?
Under mainland UAE law, gratuity is paid as a lump sum when an employee leaves. With DEWS, the employer makes monthly contributions into an investment fund managed by professional fund managers. Employees can choose how their savings are invested. The money grows over time, and employees can track their balance in real time.
What other costs do DIFC employers face?
On top of DEWS contributions, DIFC employers must provide health insurance (typically AED 5,000 to AED 15,000 per employee per year), visa and Emirates ID costs (around AED 5,000 to AED 7,000), and annual DIFC registration and data protection fees. Total employer costs typically add 15% to 25% on top of the basic salary.
Do DIFC employees pay income tax?
No. Just like the rest of the UAE, there is no personal income tax in the DIFC. Employees keep their full salary. However, DIFC-registered companies are subject to 9% corporate tax on profits above AED 375,000 under the UAE corporate tax law introduced in June 2023.
What leave entitlements do DIFC employees get?
DIFC employees are entitled to 20 working days of annual leave per year (compared to 30 calendar days under mainland law). They also get 10 days of sick leave at full pay, then 20 days at half pay per year. Maternity leave is 65 working days (33 at full pay and 32 at half pay). These differ from mainland entitlements.
Can employees withdraw their DEWS savings early?
DEWS savings become fully vested (owned by the employee) after 1 year of service. If an employee leaves before 1 year, the employer contribution returns to the employer. Employees cannot withdraw funds while still employed, but can access the full balance plus any investment gains when they leave the company.
FTA-Aligned: Based on 2025 FTA rates and regulations. For personal advice, speak to a qualified tax consultant.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms