In a recent episode of the V-FM Pensions Podcast, Mohammed Ali Yasin sat down with hosts Nico Aspinall and Darren Philp to discuss how the UAE's Alternative End-of-Service Benefits Scheme is reshaping the way employers and employees think about end-of-service entitlements, and what its continued evolution means for the region.
The key takeaways:
The Alternative EoSB Scheme is gaining ground
Rather than leaving end-of-service entitlements uninvested, the scheme allows employer contributions to be invested through approved investment funds, giving employees the opportunity to grow their accumulated benefits over time. After nearly 18 months of implementation, Ghaf Benefits is seeing strong market momentum, with employers and employees increasingly using voluntary contributions to enhance benefits, support talent attraction and retention, and pursue long-term financial goals.
Safeguarding what employees are owed
A key point Mohammed Ali Yasin raises is that end-of-service gratuity has traditionally been treated as a financial liability on employers' balance sheets, with employees receiving their entitlements only upon leaving. With the rise of long-term residency initiatives such as the Golden Visa, the Alternative EoSB Scheme offers a more structured and transparent framework, directing contributions into licensed, professionally managed investment funds.
End-of-service benefits, reimagined
Ghaf Benefits transforms end-of-service benefits from a one-time payment into a long-term wealth-building solution. Employees benefit from monthly employer contributions invested on their behalf, the flexibility to make voluntary contributions, access to professionally managed investment solutions and wealth management guidance, and the ability to remain invested when changing jobs.
Not a pension. Something different.
Unlike pensions, which are funded through employee savings and contributions, the Alternative EoSB Scheme is built around amounts already owed to employees by their employers, invested on their behalf rather than sitting as a balance sheet liability. Voluntary contributions from both employers and employees are expanding the scheme beyond its mandatory framework, giving employees greater flexibility to take an active role in their savings and build long-term financial security.
Listen to the full episode on your chosen platform below.
You can also listen directly on Spotify and Apple Podcasts.
At Ghaf Benefits, we are committed to keeping employers and employees informed about the evolving end-of-service benefits landscape in the UAE. To learn more, contact our client experience team at 6005 44 232 or email ghafenquiries@lunate.com.
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 Capital Market Authority (CMA), such authorisation does not represent endorsement or guarantee.