UAE’s unemployment insurance from Dh5: Can residents pay higher premiums for better benefits?

Starting January 1, 2023, employees of private and federal government sectors in the UAE can subscribe to the mandatory insurance scheme against job loss from Dh5 to Dh10 per month. In the event of job loss for a non-disciplinary reason, this will give the insured 60 per cent of their basic salary (capped at Dh10,000 and Dh20,000 per month, depending on the package) for three months.

However, an employee may subscribe to other plans that will offer “additional benefits”, the Ministry of Human Resources and Emiratisation (Mohre) told Khaleej Times.

“This can be done in coordination with the relevant service provider,” said the ministry.

The Federal Decree-Law on the scheme also mentions this aspect. “Additional benefits may be negotiated between the insured and the service provider,” a translation of the decree-law says.

For many residents, this comes as a relief.

Dubai resident Ronn Santos, an artificial intelligence engineer, said he is ready to shell out up to Dh100 per month for the scheme.

“A lot of my friends and relatives lost their jobs during the Covid-19 pandemic and I have seen very closely what it can do to families. When I read about the UAE’s insurance scheme and its low premiums, my first thought was whether I could pay extra premium for better benefits.

“I will definitely go for a higher premium if the scheme offers me better security,” added Santos.

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The scheme has two categories based on employees’ basic salaries.

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