DIFC DEWS Gratuity (2025): Contributions, Legacy & Examples
If you work in the DIFC, your end-of-service benefit is no longer a single lump-sum gratuity like on the UAE mainland. Since 1 February 2020, the DIFC Employee Workplace Savings (DEWS) plan has been in place, requiring employers to fund monthly contributions into a savings account in your name.
- This article explains DIFC DEWS gratuity in 2025:
- The 5.83% and 8.33% employer rates.
- How legacy gratuity from pre-2020 service still applies.
- How UAE and GCC nationals are treated under the new top-up rules.
- What the DEWS funds have delivered in 2025.
- A practical HR checklist to set everything up correctly.
- National top-ups, key fund notes, and real AED examples you can copy.
Use our UAE Gratuity Calculator if you need a quick estimate for mainland UAE, or keep reading to understand how DIFC’s funded model works. Unlike mainland or free-zone tools, there is no DIFC DEWS gratuity calculator because payouts depend on employer contributions, voluntary savings, and fund performance.
What is DIFC DEWS gratuity?
The DIFC Employee Workplace Savings (DEWS) plan is a funded workplace savings scheme that replaced the traditional gratuity formula. The DIFC Employment Law and related DIFC Authority regulations make DEWS the mandatory system for end-of-service benefits from 2020 onwards.
Employers must:
- Register with the plan administrator or use another qualifying scheme that meets or exceeds DEWS standards.
- Contribute a percentage of each employee’s basic salary into DEWS every month.
2025 Snapshot: Growth & Charges
DIFC DEWS is not just stable — it is growing fast:
- Assets under Management (AuM): USD 789m at end-2024, ~USD 889m by 31 May 2025, and expected to cross USD 1bn by the end of the year according to Pensions Monitor.
- Fees: Plan-level charges around 1.23% (split between operator, administrator, and investment adviser).
- Workforce: By H1-2025, DIFC had 7,700 companies and ~47,900 professionals, showing the plan’s coverage is widening.
Employer Contribution Rates
Employer rates depend on the total service length in DIFC:
- 5.83% of monthly basic salary → employees with under 5 years’ total service.
- 8.33% of monthly basic salary → employees with 5 or more years’ service.
📌 Important: DIFC law requires that basic salary is at least 50% of total compensation, so employers cannot reduce contributions by inflating allowances.
These rules form the foundation of the DIFC DEWS gratuity system. Because the balance grows monthly with contributions and investments, it cannot be predicted by a simple online calculator. Employees should review their DEWS account or HR reports for exact values.
| Scenario | What employer pays | Notes |
|---|---|---|
| Under 5 years total DIFC service | 5.83% of basic salary monthly | Basic salary must be ≥50% of pay; fund by day 21 next month |
| 5+ years total DIFC service | 8.33% of basic salary monthly | Switch rate when reaching 5 years’ service |
| UAE/GCC nationals (GPSSA) | Employer GPSSA share; DEWS top-up if GPSSA < DEWS by ≥ AED 1,000 | Check monthly (caps and rates affect the gap) |
| Pre-2020 DIFC service | Legacy gratuity paid at exit on final basic salary | May be funded into a qualifying scheme |
| Timing & payroll | Fund by the 21st of the following month | Keep an audit trail that matches payroll cycles |
UAE/GCC Nationals & the Top-Up Rule
Expatriate staff get standard DEWS contributions. UAE and GCC nationals, however, remain enrolled in the General Pension and Social Security Authority (GPSSA) pension scheme.
Since March 2024, DIFC employers must also pay a DEWS top-up if:
- The DEWS core contribution (5.83% or 8.33%) is at least AED 1,000 higher than the employer’s GPSSA share.
- Only the positive difference (≥ AED 1,000) is funded into DEWS.
Example scenarios
- No top-up needed: An employee with a gross salary of AED 200,000 and a basic of AED 120,000 has less than 5 years’ service. At 5.83%, the DEWS contribution equals AED 6,996. The GPSSA employer share is capped at AED 7,500. Since the GPSSA amount is already higher, there is no shortfall to cover, so no top-up applies.
- Top-up due: With the same salary profile (AED 200,000 gross, AED 120,000 basic) but more than 5 years’ service, the DEWS rate rises to 8.33%. The DEWS contribution equals AED 9,996, while the GPSSA cap remains AED 7,500. The positive difference of AED 2,496 exceeds the AED 1,000 threshold, so the employer must pay a top-up of AED 2,496 into DEWS.
- Below minimum threshold: Another employee earns AED 110,000 gross with a basic of AED 100,000 and has more than 5 years of service. At 8.33%, the DEWS contribution equals AED 8,330. GPSSA remains capped at AED 7,500. The difference of AED 830 is less than the AED 1,000 minimum, so no DEWS top-up is required under the 2024 law.
Legacy Gratuity (Pre-2020 Service)
If you worked in DIFC before 1 Feb 2020, your service up to that date created a legacy gratuity balance.
- It stopped accruing from 2020, but remains payable at exit.
- It is based on your final basic salary at the time of termination.
- Employers can either keep this liability on their books or fund it into DEWS to ring-fence it.
Investment Fund Options (2025 Snapshot)
Employees can allocate their DEWS contributions into different funds. Examples from July 2025:
- HSBC Islamic Global Equity Index Fund: +6.1% YTD
- Mercer Passive Global Equity Fund: +9.8% YTD
- Short-duration bonds: +3.1% to +3.9% YTD
- Cash options: +1.8% YTD
The default Mercer Balanced Growth Fund was flat in July. Performance varies by fund type and risk appetite.
Worked Examples
- Example A — All post-2020 service (3 years)
Basic AED 15,000 → 5.83% × 15,000 = AED 874.50 monthly.
After 36 months: AED 31,482 (before returns). - Example B — Mixed service (3 years pre-2020 + 4 years post-2020)
Basic AED 25,000 → Legacy = ~AED 52,500 at exit; DEWS = AED 2,082.50 monthly.
Final payout = legacy + DEWS account value.
These examples illustrate how employer contributions accumulate under DIFC DEWS gratuity. Remember: unlike the fixed MOHRE formula, final DEWS balances also depend on fund returns.
HR Step-by-Step Guide (Checklist)
For HR/payroll teams, here’s how to stay compliant:
- Check eligibility & salary split → Basic ≥50% of total pay.
- Choose qualifying scheme → DEWS or approved alternative.
- Register & enroll employees → Map payroll correctly.
- Handle legacy → Track pre-2020 balances.
- Apply national top-ups → If difference ≥ AED 1,000.
- Pay on time → By the 21st of following month.
- Communicate with staff → Share fund options and statements.
DEWS vs MoHRE Scheme
Both DIFC DEWS and the MoHRE Savings Scheme use monthly funding and professional fund managers. But they differ:
- Coverage: DEWS is mandatory in DIFC; MoHRE’s scheme is optional for mainland/free-zone employers.
- Fees: DEWS ~1.23% vs MoHRE default ~1.0% capped (risk funds vary).
- Legacy: DIFC preserved pre-2020 gratuity; MoHRE does not have this legacy balance.
- Regulation: DIFC trustee-based vs MoHRE/SCA oversight.
Common Pitfalls (and Fixes)
- Allowances misclassified as basic → keep basic ≥50%.
- Forgetting to switch from 5.83% to 8.33% → automate payroll triggers.
- Missing national top-ups → run GPSSA vs DEWS check monthly.
- Ignoring fees → compare DEWS vs MoHRE providers regularly.
FAQs
Conclusion
DIFC DEWS gratuity in 2025 modernizes end-of-service benefits into a transparent, funded system. Employees now receive:
- Legacy gratuity for service before Feb 2020, based on final basic salary.
- DEWS savings account for post-2020 service, funded monthly at 5.83% or 8.33%.
- National top-ups when GPSSA contributions fall short by AED 1,000 or more.
This dual structure ensures compliance with DIFC Employment Law and offers long-term financial security. For DIFC DEWS gratuity exact balances, check your DEWS statement or speak with HR.
➡️ Use our UAE gratuity calculator to compare mainland benefits, or explore our Free Zone Gratuity Guide for other zones. For payment issues, see our Gratuity Dispute Guide
Author Bio
Written by Noor Al Emarat — Editorial Team at Gratuity Calculator UAE. The team focuses on accurate, practical guidance covering gratuity calculations, HR processes, and UAE labour law. Every article is carefully reviewed to help both employees and employers understand end-of-service benefits and workplace rights with confidence.
