The United Arab Emirates (UAE) Unemployment Insurance Scheme was launched in January 2023. The scheme is aimed at supporting individuals 3-months after losing their job to provide a cushion while finding a new job. It requires all (public and private) employees in the UAE to join the scheme by June 30, 2023. Employees exempt from subscribing include domestic helpers, investors, part time workers, juvenile workers and retirees receiving pension or have joined a new job.
There are two categories of insurance. The first category covers those with a basic salary of Dh16,000 or less. The insurance premium for this category is Dh5 per month with a maximum monthly compensation of Dh10,000. The second category covers those with a basic salary exceeding Dh16,000. The insurance premium for this category is Dh10 per month with a maximum monthly compensation of Dh20,000. Compensation can be claimed for up to three months from the date of unemployment at a rate of 60% of an employee’s average basic salary from the last six months.
To qualify for the compensation, employees must have been subscribed to the scheme for at least 12 consecutive months and compensation can be claimed within 30 days of job loss. However, the employee forfeits their right to compensation, if she/he leaves the country or start a new job within the processing period which takes two weeks.
Are you an employee or employer in the UAE? Do you want to know more about the Scheme and how to apply? Drop us an email (office@alphaprimedwc.ae) or give us a call (+971 58 515 2374) at any time.
