UAE's unemployment insurance scheme: Compensation amount, eligibility, exemptions explained

Ministry said the programme is a social security scheme that protects residents if they lose their jobs

A Staff Reporter

Published: Mon 10 Oct 2022, 5:44 PM

Last updated: Tue 11 Oct 2022, 3:01 PM

A new scheme that protects residents if they suddenly lose their jobs is now in effect. According to the Ministry of Human Resources and Emiratisation (Mohre), the unemployment insurance programme is a social security scheme that protects employees during unemployment until they find a new job.

Insurance companies licensed by Central Bank of the UAE will offer this service. Here is all you need to know:

What the scheme involves:

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— Insurance compensation accounts for 60 per cent of the employee’s subscription salary and is subject to a maximum of Dh20,000 per month, with a maximum of 3 months’ payment from the date of unemployment.

— The insured employee must have completed a minimum of 12 consecutive months at their previous job. This will be calculated from the date of subscription in the insurance system. Additional benefits may be negotiated between the insured and the service provider.

— Private and federal government sector employees will be covered under this insurance scheme

— The compensation shall end once the employee joins another job

Claims cannot be made if:

— The beneficiary has been dismissed from their work for disciplinary reasons

— The compensation claim has been made through fraud or deception

— If it is found that the establishment in which the employee works is not real, penalties shall apply

Exempted employee categories are:

— Investors (owners of the establishment/s they work at)

— Domestic workers

— Temporary-contract workers

— Juveniles under the age of 18

— Pension-receiving retirees who have joined a new employer

The UAE’s new unemployment insurance scheme will include all private and public sector workers, according to Dr Abdulmannan Al Awar, Minister of Human Resources and Emiratisation.

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