Education
A future worth having is rarely built in a single leap. It’s assembled, piece by piece, through choices that gather momentum and grow over time, much like the contributions made to alternate end-of-service benefits schemes. These contributions are transforming the traditional approach to end-of-service rewards, turning what was once a final payout into a journey of ongoing investment and long-term financial security.
From Lump Sum to Lasting Growth
For many years, the traditional gratuity system meant employees received a single lump-sum payout from their employer at the end of service. This amount was held by the employer and paid out based on tenure and salary, with little opportunity for growth and no investment options.
Enhanced alternative end-of-service benefits schemes take a different approach, with monthly contributions made throughout employment that are invested in regulated funds, providing both employers and employees with greater transparency, security and growth potential.
The Building Blocks of Your Benefits
An enhanced alternative end-of-service benefits plan tells a story, not just of final payouts, but of the steady partnership between employer and employee. This is where Ghaf Benefits by Lunate Capital LLC comes in. As a MoHRE-approved and SCA-regulated EoSB plan in the UAE, it is designed to meet the objectives of both employers and employees, elevating the traditional gratuity framework to internationally recognised standards of investible end-of-service benefits. Each contribution is a sign of a shared commitment, a small but meaningful step that builds trust, month by month.
In the UAE, contributions to the EoSB plan can happen in the following ways:
1. Mandatory Employer Contributions:
Employers make monthly contributions for each employee:
5.83% of the basic monthly salary of employees with less than five years of service
8.33% of the basic monthly salary of employees with five years or more of service
2. Voluntary Employer Contributions
Employers can make additional voluntary contributions at any time, with no cap. They may also transfer accrued EoSB liabilities to the scheme, increasing the base for investment growth.
3. Employee Voluntary Contributions
Employees can choose to make voluntary contributions, up to 25% of their annual gross salary, either monthly or annually, to further build their EoSB savings.
4. Employee Benefit Portability
If an employee changes jobs and their new employer participates in the scheme, their accumulated benefits transfer seamlessly to the new account. This ensures continuity and uninterrupted growth of their EoSB entitlements.
Why Your Contributions Matter
EoSB contributions are not simply held in cash. They are invested in professionally managed funds, including conventional and shariah-compliant options. Employees can choose from a range of investment strategies, such as capital protection, conservative, and balanced funds.
This investment-driven approach offers diversification and the potential for returns over time, helping employees build greater exposure to long-term financial security compared to the traditional gratuity model.
Transparency, Security & Control
Alternative EoSB schemes are designed for transparency and regulatory assurance. Employees and employers can monitor contributions and investment performance in real time using secure online portals. Contributions are held in SCA-regulated funds, fully separated from employer finances, and managed under MOHRE oversight. Employees are empowered to adjust their investments, make voluntary top-ups, and carry their benefits forward if they change jobs within the scheme.
Ghaf Benefits: Empowering Your EoSB Journey
As the UAE’s workplace landscape evolves, Ghaf Benefits stands at the forefront of end-of-service innovation. Our MOHRE-approved and SCA-regulated platform is designed to transform the traditional gratuity experience into a powerful tool for financial wellbeing.
Ghaf Benefits offers both employers and employees the flexibility to tailor contributions and investments, supported by world-class expertise and an intuitive digital experience. Whether you’re seeking stability, growth, or simply peace of mind, our commitment is to empower you with the tools, transparency, and confidence needed to make the most of every contribution, today and for the future.
Keep Exploring
If this article has sparked your curiosity and you want to learn more about enhanced alternative end-of-service benefits, our Frequently Asked Questions (FAQs) page offers clear answers and practical detail.
Additionally, if you’d like to estimate the potential value of your alternative EoSB and voluntary contributions, our user-friendly end-of-service benefits calculator helps you identify your risk appetite and investment preferences.
Ready to see your financial future take shape? The Ghaf Benefits team is here to help. Talk to us today!
Disclaimer
The Lunate End of Service Benefits Fund (“Lunate EoSB”), known as the Ghaf Benefits Plan, is managed by Lunate Capital LLC and its affiliates. The material provided is for informational and educational purposes only, not investment, legal, tax, accounting, or professional advice, nor an offer to buy or sell any securities or products. Recipients should seek independent professional advice before making decisions. Past performance or historical data are illustrative only and not indicative of future results, and forward-looking statements involve risks and uncertainties. Lunate does not guarantee the accuracy, completeness, or reliability of the material and disclaims liability for any losses, damages, or errors arising from its use. Redistribution is prohibited without prior written consent. While the Lunate EoSB is authorised by the UAE Securities and Commodities Authority (SCA), such authorisation does not represent endorsement or guarantee.
