Daman Investments
End of Service

Daman Investments End of Service Program

The Daman Investments End of Service Program (“Savings Scheme”) is part of the UAE Government approved alternative end of service benefits scheme. As an approved alternative scheme, the Savings Scheme enables employees to invest their end of service entitlements (also known as the ‘end of service gratuity’) in reputable funds that have been approved by the UAE’s Securities & Commodities Authority. This means that at the end of their employment, employees receive their entitlement, which will have had the opportunity to grow in value as part of the Savings Scheme.

Employers who elect to be part of this optional Savings Scheme makes monthly contributions to the Savings Scheme fund which is then invested by skilled investment managers to grow and enhance the benefits available to Employees. The Savings Scheme is available as an alternative to the statutory end of service entitlements regime and brings greater security to employers and employees alike.

Investment Options

Daman’s conventional money market fund seeks moderate capital growth whilst protecting employees’ contributions. Funds will mainly be deployed to US Treasuries and deposits in highly rated banks in Developed Markets and the UAE.

The Daman Shari’ah Compliant Money Market Fund seeks moderate capital growth whilst protecting employees’ contributions. The underlying portfolio mainly consists of Wakala Deposits in highly rated banks, as well as  short term Sukuks from highly rated issuers.

Employee Benefits

Financial Planning

Daman Investments End of Service Program helps employees build a secure future by systematically growing their savings through the prudent investment of their Employer’s contribution into their end of service fund.

Employees have the option to enhance their investments by voluntarily adding their own funds to the available options, tailoring their contributions to their personal risk preferences. These additional investments are entirely at the employee’s discretion, supplementing the employer’s contributions.

Daman Investments End of Service Program focuses on improving the financial wellbeing of employees, which in turn contributes to a more fulfilling work environment. The Scheme helps employees secure their futures, leading to heightened job satisfaction. This investment in employee welfare is a cornerstone of the UAE’s program to enhance individual performance and cultivate a productive and engaged workforce. The benefits extend beyond immediate financial gains, promoting a culture of prosperity and contentment that supports both personal growth and organisational success.

Daman Investments End of Service Program is designed to educate employees on the advantages of saving and accumulating wealth through strategic investments. By participating, employees gain some of the knowledge necessary to make informed investment choices, helping ensure a more secure financial future. Additionally, the program offers the flexibility to continue investments with Daman even after their employment ends. This ongoing opportunity allows for sustained growth and long-term financial stability, reinforcing our commitment to supporting employees beyond their current workplace.

Daman Investments End of Service Program offers employees a variety of investment choices to maximize their returns, each tailored to match different risk tolerances: 

  • Very limited risk default option, with a capital protection mechanism (limited)
  • Risk-based funds with options for conservative, moderate, or aggressive allocations
  • Flexible investments available in both conventional and Shar’iah compliant structures

Employee Benefits

Simplifying Business Operations

Daman Investments End of Service Program simplifies business processes by partnering with approved service providers to manage end-of-service benefits efficiently. This streamlined approach eases the administrative burden on companies allowing them to focus on growth and development, thereby enhancing the UAE’s appeal as a desirable place to live and work.

Daman Investments End of Service Program enriches employee compensation packages with additional financial benefits beyond standard salaries. This is not only effective in attracting top talent but also crucial in retaining them, providing a significant advantage in today’s competitive job market.

Employers benefit from Daman Investment’s robust infrastructure, expertly designed to manage end-of-service benefits. This high quality Savings Scheme ensures that employee funds are handled with the utmost professionalism and precision.

Daman Investments End of Service Program streamlines the management of investments and disbursements for employers’ end-of-service funds, creating significant operational efficiencies. By participating in the Savings Scheme, employers will experience a more cost-effective solution compared to the end of service regime outside the Scheme. Over the medium to long term, the Savings Scheme will be a more economical option for employers looking to manage their end of service financial responsibilities efficiently.

Employers can enhance their employee benefits package by choosing to make additional contributions over and above the employees basic entitlement. This flexibility allows companies to offer more substantial support to their staff, reinforcing their commitment to employee welfare.

Registration and Subscription Steps for Employers

Timely Contributions: Companies must ensure that contributions to Daman Investments are made punctually each month to maintain the integrity of the scheme.

Consequences of Delays: Delayed contributions may lead to penalties and fines. Unpaid contributions will be escalated to the UAE Ministry of Human Resources & Emiratisation for further action and enforcement.

Employee Questions: Employers are responsible for addressing any inquiries from employees regarding their Savings Scheme and must communicate with employees in a transparent and effective way.

Daman Investments is regulated by the Emirates Securities and Commodities Authority (SCA).