The Ministry of Human Resources and Emiratisation (MoHRE) has declared that the Unemployment Insurance Scheme of the UAE has exceeded one million subscribers after its launch in January 2023.
Employees have to mandatory subscribe to the scheme by June 30, 2023. Failure in subscribing will result in a penalty of Dh400.
The scheme covers employees in the private sector and the federal government. It strives to offer low-cost job security that will support the career path and living stability of the employees in the UAE.
Dr Abdulrahman Al Anwar, Minister of Human Resources and Emiratisation, highlighted that the scheme “has had a positive effect on the labour market.” He further cited that it is a “driver of growth for the economic sectors of the UAE.”
He called on those eligible to subscribe to the Unemployment Insurance Scheme to benefit from it and asked other employers to encourage their employees to subscribe under it.
The people exempted from subscribing to the scheme include:
- Investors.
- Owners of the facilities in which they work.
- Employers with temporary employment contracts.
- Domestic helpers.
- Juveniles under 18 years of age.
- Retirees who receive a retirement pension and have joined a new job.
The insurance is divided into two categories:
- The first category consists of those who have a basic salary of Dh16,000 and below, and
- The second category consists of those with a basic wage exceeding 16,000.
The Insurance compensation can be claimed as long as the insurer has been subscribed to the scheme for at least twelve consecutive months. The claim must be submitted within 30 days of job loss and will be processed within two weeks of the submission. The right to compensation of the insured is fortified when:
- They cancel their residency and leave the country
- Joins a new job within a processing period.
The compensation is calculated at the rate of 60℅ based on the average basic salary in the last six months before unemployment. It is then paid for a maximum of three months for each claim from the date of unemployment.
