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All Details About The Unemployment Insurance Scheme By UAE’s Government

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All Details About The Unemployment Insurance Scheme By UAE’s Government

The Ministry of Human Resource and Emiratisation announced on Wednesday that all employees including Emirati and foreign employees working in the private and public sector must subscribe to their new unemployment insurance scheme from January 1,  2023.

This insurance plan is to support the emiratis and foreigners by paying a sum of cash for three months if they lose their jobs. All the employees who apply for the program can avail of its benefits.

The new insurance scheme will welcome more employees from the nation as well as abroad and this will guarantee a sustainable and decent life for the emiratis and residents during the unemployment period.

Nine insurance companies agreed to furnish for the insurance scheme. These companies will build the framework and techniques for the unemployment insurance scheme. The ministry also released more details about the program how much it will cost and that employees will pay for it themselves.

How Does The Unemployment Scheme Work? 

The unemployment scheme is a compulsory program for emiratis and foreign laborers in the public and private sectors.

All Details About The Unemployment Insurance Scheme By UAE’s Government

The employees in the private and public sectors can subscribe to the insurance program in numerous ways, including the official insurance pool’s website and its smart application, banks and ATMs, business centers, money exchange companies, or SMS. The ministry revealed that it will announce more channels to subscribe to the scheme at a later date

The insurance scheme plans to compensate an employee from the date of an employees job loss to a maximum of three months and calculated at 60 percent of their previous job salary for a maximum claim of $5,445 (Dh20,000) per month

The unemployment scheme is further divided into two categories. The first category is for employees who earn a basic salary of $4356 (Dh16,000) or less and the second category is for employees who earn a monthly salary of $4356 (Dh16,000) or more.

The employees pay themselves for their coverage. The first category employees can pay  $1.36 (Dh5) per month or $16.34 (Dh60) annually and the second category employees who earn more than $4356 (Dh16,000) can pay $2.72 (Dh10) per month or $32.67 (Dh120) annually

The compensation is covered by calculating 60 percent of the previous salary. However the unemployment compensation will not exceed $2722.56 (Dh10,000) for first-category employees, and for second-category employees, the compensation will not exceed $5,445 (Dh20,000)

The employees can only claim this insurance scheme only if they are insured. The insured employees, when they lose their job must submit their claim through three approved claim channels: The smart application, the insurance pol’s e-portal, and the call center prior to 30 days of unemployment

The compensation will be paid to the insured employee within two weeks of the claim application and can be capped at a maximum of three months per claim

Employees who work on a commission basis can also subscribe to this scheme.

The employees are only eligible for the unemployment scheme if only they have worked in the nation and subscribed to the scheme for at least 12 months. 

However, employees cannot claim their insurance if they left the country, have resigned and started a new job, and have been dismissed for any disciplinary reasons. In addition, this unemployment insurance does not cover investors, owners of the establishments, part employees, employees under the age of 18, and employees who receive a pension.

According to the minister of Human Resources and Emiratisation, Dr. Abdulrahman Al Awar. this new unemployment scheme is a crucial part of developing the national economy.

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