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Employees must get UAE unemployment insurance starting 2023

A new Unemployment Insurance Scheme in the UAE will be imposed in 2023, with government and private sector employees required to get the insurance starting January 1.

The Unemployment Insurance Scheme, which is part of the UAE’s Unemployment Insurance Law, aims to provide cash compensation to employees in case they lose their jobs.

On Thursday (November 3), the Ministry of Human Resources & Emiratisation (MOHRE) signed an agreement with nine local insurance companies on the insurance scheme. Here’s all you need to know:

What is the UAE Unemployment Insurance Scheme?

Under the insurance scheme, employees in the private sector and UAE government will be provided with cash compensation for up to three months in the event of job termination for reasons beyond their control.

Who pays for the unemployment insurance?

The insurance scheme is paid by the employee.

Who needs to get UAE unemployment insurance?

Federal government and private sector employees must subscribe to the scheme from January 1, 2023. Freelance workers may also subscribe to the insurance scheme.

Who are excluded from getting UAE unemployment insurance?

Those excluded from the insurance scheme include investors – owners of establishments in which he or she works, 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.

How much does the UAE unemployment insurance cost?

Those earning a basic monthly salary of Dh16,000 or less will pay Dh5 per month (or Dh60 annually). Those earning a basic salary of more than Dh16,000 will pay Dh10 per month (or Dh120 annually). The payment can be made by the employee monthly, quarterly, half-yearly, or on an annual basis. The value of the insurance policy is subject to value-added tax (VAT).

In case I lose my job, how much insurance compensation can I get?

For those with a salary of Dh16,000 or less, the monthly compensation is up to Dh10,000. For those earning more than Dh16,000, the monthly compensation is up to Dh20,000. the insurance coverage compensation is calculated on a monthly basis at the rate of 60 percent of the basic salary and for a maximum of three months for each claim from the date of unemployment.

How do I claim unemployment insurance?

The insured must submit the claim through the three approved claim channels – the insurance pool’s e-portal, the insurance pool’s smart application, and the insurance pool’s call centre. This must be done within 30 days from the date of unemployment.

When will I get cash compensation?

Compensation will be paid within two weeks from the date of the claim and capped at a maximum of three months per claim. Compensation for an employee is eligible if they have worked and subscribed for at least 12 months to the insurance scheme

What could disqualify me from getting insurance claim?

– If you haven’t worked for 12 months or subscribed to the insurance scheme for 12 months
– If you left the country
– If you joined a new job
– If the reason for job termination is disciplinary
– If you resigned from your work

How can I subscribe to the unemployment insurance?

Employees may subscribe to the insurance scheme via the Insurance Pool’s website, smart application, bank ATMs, kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS, or any other channel, which MoHRE may announce at a later date.  ICA/Expat Media


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