Your complete guide to the UAE Unemployment Insurance Scheme
The welfare of UAE nationals and residents has been at the forefront of all government plans. Whether it’s infrastructure development or labour law in the UAE, the primary objective is to benefit the country’s people and protect workers’ rights. One of these initiatives is the UAE unemployment insurance scheme, another step towards ensuring financial sustainability for those employed there.
Here is what you need to know about the UAE’s social security support program.
UNEMPLOYMENT INSURANCE IN THE UAE FOR EMIRATIS AND RESIDENTS
As announced by the Minister of Human Resources and Emiratisation, H.E. Dr Abdulrahman Al Awar, this programme will financially support individuals who lose their jobs.
All federal (government) and private sector employees were asked to subscribe to this scheme. Failure to do so would incur a fine of AED 400, while subscribers who failed to make regular payments would be fined AED 200.
HOW WILL IT WORK?
The Ministry of Human Resources and Emiratisation has signed nine local insurance companies to set up the programme’s framework. The list includes:
- Dubai Insurance Company
- Abu Dhabi National Insurance Company
- Oman Insurance Company
- Al Ain Ahlia Insurance Company
- Emirates Insurance Company
- Orient Insurance
- Abu Dhabi National Takaful Company
- National General Insurance Company
- Orient UNB Takaful Company
The insurance programme will have two categories: workers with a basic salary of up to AED 16k and employees who earn more than AED 16k in basic salary.
Everyone has been wondering about the contribution of the UAE unemployment pay for Emiratis and residents. The insurance cost for the first category employees would be AED 5+VAT per month, amounting to AED 60 annually.
Those in the second category will pay AED 10+ VAT per month or AED 120 per year. Employee payments will be made either monthly, quarterly, bi-annually or yearly. Moreover, the value of the insurance policy is subject to VAT.
The idea of the insurance company programme is to provide flexibility and not overburden anyone trying to secure their future.
In return, these employees will be given a monthly cash sum if they meet the set criteria. The sum will not be more than AED 10k for first-category employees and AED 20k for second-category employees. It will be calculated at a rate of 60% of the basic salary.
Anyone employee who loses his or her job must make a claim within 30 days through the claim channels, including smart application, call centre or insurance pool’s e-portal. Compensation will be handed out within two weeks of the claim. It is capped at a maximum of three months per claim.
ELIGIBILITY
To be eligible, an Emirati or UAE resident employee must have worked and subscribed to the UAE Unemployment Insurance 2024 for at least 12 months.
If an employee resigns or is fired for disciplinary reasons, he or she will not be eligible for a claim. Similarly, insured employees will not be eligible if they have left the UAE or joined another company.
WHO ARE EXEMPTED?
This scheme does not apply to domestic workers, investors (company owners), temporary contract holders, under-18 employees or retirees who receive pensions.
UNEMPLOYMENT SCHEME SUBSCRIPTION
As per the MOHRE announcement, there are multiple subscription methods. You can subscribe for free using the Involuntary Loss of Employment (ILOE) website or app.
Here’s how you can subscribe:
- Visit the website and click the ‘Subscribe Here’ tab.
- Under individual, you have to choose between federal or private job options.
- Sign in using your Emirates ID; a one-time password will be sent to your phone.
- Next, your basic salary and the monthly policy premium will appear. Check the box to confirm your details.
- Select the policy coverage period (One/Two years).
- Select your premium schedule (Annual, semi-annual, quarterly or monthly).
- Enter the email ID where you want to get the insurance certificate.
- Make the payment with your card.
- Download your unemployment insurance UAE certificate.
You can also subscribe via the Botim app, Tawjeeh, Tasheel, Al Ansari Exchange, du, Etisalat, kiosks and bank apps/ATMs. However, you will be charged a fee for this method.
As per the latest MoHRE announcement, employees working in free zones and semi-government entities can also register for the involuntary loss of employment (ILOE) scheme.
WHAT DOCUMENTS ARE REQUIRED FOR SUBSCRIPTION?
Applicants would require a valid Emirates ID and an active UAE mobile number.
WHAT IS THE PENALTY FOR NON-SUBSCRIPTION?
Those failing to register for the insurance by September 30, 2023, will be subject to an AED 400 fine.
ARE EMPLOYERS REQUIRED TO REGISTER THEIR EMPLOYEES FOR THE SCHEME?
Employers ARE NOT required to register their employees or pay for the mandatory scheme.
FAQS ABOUT THE UAE UNEMPLOYMENT INSURANCE SCHEME
WHO IS ELIGIBLE FOR THE UAE UNEMPLOYMENT INSURANCE CLAIM?
Apart from the exempted group, anyone who has already subscribed to the scheme for at least 12 months, hasn’t been let go from the job due to disciplinary reasons and is still living in the UAE will be eligible.
IS THE UNEMPLOYMENT PAY SCHEME UAE FOR NON-EMIRATI EMPLOYEES AS WELL?
Yes, both UAE citizens and residents who lose jobs can use this blanket cover. The scheme is mandatory for all employees of an organisation.
HOW CAN I FIND A JOB IN THE UAE?
Are you looking for employment in the UAE? Here is a list of the top recruitment agencies in the UAE that can help you. Similarly, you can find excellent opportunities using these trending UAE job sites.
The UAE unemployment insurance scheme is a progressive step that will further enhance the country’s reputation as a land of opportunity. The unemployment pay scheme in UAE will allow individuals some space when they face difficult times. This plan would also benefit people with families to care for while managing the transitionary period between jobs.
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