Do employees have to cash out EOSB savings when markets fall?

With the recent market volatility, many employers and employees may be wondering:

"What happens if an employee leaves their job when markets are down? Will they have to withdraw their EOSB savings at a loss?"

The short answer is: not necessarily.

Unlike traditional gratuity arrangements, EOSB savings are generally invested in regulated funds. While these funds are exposed to market movements, employees are generally not required to withdraw their savings immediately when changing jobs. This means that savings can continue to remain invested until the employee decides to transfer or withdraw them, subject to the applicable scheme rules.

This flexibility is important because markets can be volatile over short periods. For example, markets declined towards the end of March before recovering broadly in April.

GO SAVER (a DIFC EOSB Savings Plan) provides a useful example. April 2026 fund performance is as follows:

• Money market funds: +0.2%
• Fixed income funds: +0.8% to +2.0%
• Diversified funds: +2.6% to +5.7%
• Global equity funds: +9.2% to +13.5%
• Indian equity funds: +8.3% to +9.0%

What is important to remember is:

• EOSB savings do not necessarily need to be withdrawn when markets are volatile. Most schemes have built-in flexibility.
• Employee outcomes will differ depending on the investment funds selected and the level of risk taken.
• EOSB savings are typically built through monthly contributions over many years. As such, long-term performance is generally more meaningful than short-term market movements.

For employees, understanding how the scheme works is just as important as understanding investment performance itself.