The Ministry of Human Resources and Emiratisation in the United Arab Emirates (UAE) has signed an agreement with nine local insurance companies to operate and fund the country’s unemployment insurance scheme.

  • The deadline for registration is June 30, 2023.
  • Employees can register through the insurance pool’s website and smart application, their bank, ATMs, money exchange companies, business service centers, kiosk machines, du and Etisalat, or directly with an insurance company.
  • Compensation is paid for a maximum of three months from the date of an employee’s job loss and is calculated at 60% of their basic salary over the most recent six months before the loss of employment, with a maximum payment of Dh20,000 ($5,445) per month.
  • The insurance program is divided into two categories, based on the employee’s basic salary.
  • Employees earning a basic salary of Dh16,000 or less per month will pay Dh5 per month, or Dh60 annually, for insurance.
  • Employees earning a basic salary of Dh16,000 or more per month will pay Dh10 per month, or Dh120 annually.
  • Employees must pay for the insurance themselves and can choose to do so on a monthly, quarterly, half-yearly, or annual basis.
  • If an employee has not registered by June 30, 2023, they will be fined Dh400.
  • If an employee has registered but failed to pay their contributions for three consecutive months, they will lose the benefits of the scheme and must re-subscribe, pay any unpaid contributions, and pay a fine of Dh200.
  • Employers are not required to register their employees in the insurance scheme or pay any contributions.
  • Employees are responsible for registering for the unemployment insurance scheme, but employers are advised to remind their staff of this obligation.
  • Employees are eligible for the jobless payment if they have worked and subscribed to the insurance program for at least 12 months, as long as they have not been dismissed for disciplinary reasons or resigned.
  • Employees who work on a commission basis may also subscribe to the scheme.
  • Insured employees are not eligible for unemployment benefits if they are terminated for disciplinary reasons or resign.
  • Employees must submit their unemployment insurance claim within 30 days of their termination date through one of three approved channels: the insurance pool’s e-portal, smart application, or call center.
  • Compensation is paid within two weeks of the claim and is capped at a maximum of three months for each claim.
  • Benefits cease from the date the employee secures alternative employment in the UAE

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