Over a million people have signed up to the UAE's unemployment scheme since its launch in January.
The scheme covers employees in both the public and private sectors, paying out in the event of job redundancy.
It also aims to further attract Emirati and international talent into the labour market boosting its competitiveness, without additional costs on employers.
The Ministry of Human Resources and Emiratisation has called on those who are eligible to subscribe and urged companies to encourage their employees to sign up.
The insurance is divided into two categories – the first covering those with a basic salary of AED 16,000 and less. The insurance premium for the insured employee in this category is set at AED 5 per month (AED 60 annually), and monthly compensation is capped at AED 10,000 per month. The second category includes those with a basic salary exceeding AED 16,000, and the insurance premium is AED 10 per month (AED 120 annually) with a monthly compensation of up to AED 20,000.
The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The claim can be submitted within 30 days of job loss, and will be processed within two weeks of submission. The insured’s right to compensation is forfeited in the event that he/she cancels their residency and leaves the country, or joins a new job, within the processing period.
The compensation is calculated at the rate of 60 per cent of the average basic salary in the last six months before unemployment, and paid for a maximum of three months for each claim from the date of unemployment.
Those exempted from subscribing include investors, owners of facilities in which they work, domestic helpers, employees with a temporary employment contract, juveniles under 18 years of age, and retirees who receive a retirement pension and have joined a new job.
Unemployment Insurance Scheme subscribers exceed 1 million since launch in January 2023.#WamNews https://t.co/UyfGOR0MdP pic.twitter.com/tAEQKSdRds
— WAM English (@WAMNEWS_ENG) April 5, 2023
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