DIFC DEWS Scheme Surpasses USD 1 Billion as Workplace Savings Replace Gratuity for 74,000 Employees

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DEWS crosses $1bn in five years as DIFC's gratuity-to-savings shift reaches scale. What 74,000 funded accounts mean for advisors.

DIFC's DEWS scheme surpassed USD 1 billion in assets under administration in October 2025, just five years after launch.
The scheme now serves 74,323 registered employees across 2,726 enrolled employers in the DIFC.
DEWS replaced the traditional unfunded end-of-service gratuity with a funded, defined-contribution savings model.
Employer contributions range from 5.83 to 8.33 per cent of monthly basic salary, mirroring the old gratuity cost.
A 2024 amendment introduced top-up rules for UAE and GCC nationals and new provisions for sanctioned persons.
The milestone signals growing demand for advisory services around workplace savings and retirement planning in the UAE.

End-of-Service Gratuity Reform Reaches Scale in Dubai's Financial Free Zone

The DIFC Employee Workplace Savings scheme, known as DEWS, has passed the USD 1 billion mark in assets under administration. Launched in February 2020, the defined-contribution workplace savings plan replaced the traditional end-of-service gratuity system for employers registered in the Dubai International Financial Centre. The milestone confirms that funded, investment-linked savings structures can scale rapidly within the UAE when backed by clear legal mandates and professional administration.

Administered by Zurich Workplace Solutions and governed under DIFC Employment Law (Law No. 2 of 2019), the scheme now serves more than 74,000 employees across nearly 2,800 participating employers. For investment advisors operating in or around the DIFC, the growth represents both a maturing benefits ecosystem and an expanding market for advisory services linked to employer-sponsored savings and end-of-service gratuity reform.

USD 1 Billion in Five Years of Operation

DIFC announced in October 2025 that DEWS had crossed the USD 1 billion threshold in assets under administration. At the time, the scheme supported 74,323 registered employees and 2,726 enrolled employers. Beyond the assets still held within the plan, DEWS had already paid out more than USD 340 million to former participants who had left DIFC employment.

These figures reflect compound growth from zero at launch in February 2020. Mandatory employer contributions, voluntary employee top-ups, and investment returns on diversified portfolios have all driven the accumulation. On a simple per-capita basis, the average account balance stands at roughly USD 13,500, though individual figures vary widely depending on salary, tenure, and contribution history.

The milestone also signals a broader shift. Zurich Workplace Solutions now administers more than 850 workplace savings plans across the UAE, serving over 68,000 employees and 2,100 businesses, including 72 Dubai government entities and free-zone authorities. The free zone itself posted record results in 2025 with more than 8,800 active companies, providing the corporate density needed for a scheme of this scale to thrive.

How DEWS Works: Structure, Contributions, and Access

DEWS operates as a trust-based, funded arrangement that segregates employee savings from employer balance sheets. Equiom serves as the independent master trustee, holding contributions on behalf of employees as beneficial owners. Zurich Workplace Solutions manages day-to-day administration, while Mercer acts as investment adviser, curating diversified funds across equities, fixed income, and other asset classes.

Smart Pension supplies the digital platform that processes contributions and participant interactions. The underlying funds and service providers are regulated by the Dubai Financial Services Authority (DFSA). This architecture mirrors international pension design, combining independent trusteeship with professional investment management.

Employers must contribute at least 5.83 per cent of each employee's monthly basic salary for the first five years of continuous service. After five years, the minimum rises to 8.33 per cent. These rates broadly mirror the financial cost of the legacy gratuity formula of 21 days' and 30 days' basic wage per year of service respectively, but convert an unfunded liability into a predictable monthly outflow.

Employees can also make voluntary contributions through salary deductions, building savings beyond the statutory minimum. On leaving DIFC employment, participants can withdraw their full balance. Those still employed may withdraw up to 30 per cent of their voluntary savings, with a maximum of two partial withdrawals per year. Funds typically reach the employee's bank account within three to ten working days of an approved request.

Legal Foundation and 2024 Amendments

DEWS sits within Part 10 of DIFC Employment Law (Law No. 2 of 2019), which mandates monthly contributions into the scheme or an approved qualifying alternative. Non-compliance can result in fines of up to USD 2,000 per employee per violation. Employers must also manage any legacy gratuity accrued before 1 February 2020, which they can either pay directly at termination or transfer into DEWS with the employee's written consent.

In March 2024, DIFC enacted Amendment Law No. 1 of 2024, introducing two significant changes. First, employers must now make top-up payments into a qualifying scheme for UAE and GCC national employees. These apply where contributions to the federal General Pension and Social Security Authority (GPSSA) fall short of what DEWS would otherwise provide. The minimum top-up is AED 1,000 per month, ensuring benefit parity with expatriate colleagues.

Second, the amendment addresses sanctioned persons. Where UN or UAE Cabinet sanctions prevent contributions to DEWS, employers must revert to accruing gratuity until the sanctions status changes or employment ends. This ensures affected employees still accumulate end-of-service benefits, even outside the funded scheme. The employer is explicitly shielded from liability for any investment returns that would have accrued had contributions been made during the sanctions period.

What This Means for Investment Advisors in the UAE

The scale of DEWS creates tangible advisory opportunities. With more than 74,000 funded accounts and a growing asset pool, demand is rising for guidance on investment allocation, voluntary contribution strategies, and retirement planning that integrates DEWS with offshore savings. WTW's recent move to secure a DFSA investment advisory licence in DIFC, targeting the end-of-service benefit market directly, confirms that global firms view this as a viable practice area.

Beyond individual advice, DEWS opens an institutional channel. Employers need support selecting qualifying schemes, benchmarking contributions against market norms, and communicating investment risk to staff. The wider EOSB reform movement extends well beyond DIFC through Zurich's 850-plus plans across Dubai government entities and free zones.

Advisors who develop workplace savings expertise now are positioning themselves for what is becoming a structural feature of the UAE benefits landscape. As more employers adopt funded schemes, the advisory opportunity will grow alongside the asset base.

What Clients are Asking their Advisors

What is the DEWS scheme and who does it apply to?

DEWS is the DIFC Employee Workplace Savings plan, a mandatory defined-contribution savings scheme for employers registered in the Dubai International Financial Centre. It replaced the traditional end-of-service gratuity system from 1 February 2020. All DIFC employers must enrol eligible employees and make monthly contributions unless they participate in an approved alternative qualifying scheme.

How much do DIFC employers have to contribute to DEWS each month?

Employers must contribute at least 5.83 per cent of each employee's monthly basic salary during the first five years of continuous service. After five years, the minimum rises to 8.33 per cent. These rates are calibrated to match the financial cost of the old gratuity formula, converted into funded monthly payments rather than an unfunded lump-sum liability.

Can employees withdraw money from DEWS while still working at a DIFC company?

Mandatory employer contributions cannot be withdrawn while the employee remains in DIFC employment. However, employees who make voluntary contributions through salary deductions may withdraw up to 30 per cent of their voluntary balance, with a maximum of two partial withdrawals per year. Full access to all savings becomes available upon leaving DIFC employment.

How does DEWS compare with the traditional UAE end-of-service gratuity?

Unlike gratuity, which was an unfunded employer liability paid as a lump sum at termination, DEWS contributions are transferred monthly into an independent trust and invested in professionally managed funds. Employees gain real-time visibility over their balance and the potential for investment growth. However, they also bear investment risk, as returns depend on market performance and are not guaranteed.