Over 2 Million Enroll in UAE Unemployment Insurance
- Publish date: Wednesday، 17 May 2023 | Last update: since 5 days
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Over 2 million individuals, including 40,000 Emiratis, have enrolled in the unemployment insurance program.
During his Tuesday speech to the Federal National Council (FNC), Abdulrahman Al Awar, the Minister of Human Resources and Emiratisation, highlighted these facts.
Eligible workers in the UAE have to subscribe to the scheme before June 30 to avoid penalties. It’s an ultra-low-cost security net that protects workers if they lose their jobs. Al Awar also stated that employees can hold discussions and get extra benefits from their insurance companies.
These policies are meant to be flexible policies that aim to increase stability and flexibility in the labour market. Others include:
Worker protection insurance system
Employers must provide insurance coverage for workers in insolvency, covering repatriation, end-of-service benefits, transportation, and unpaid salaries. This policy aims to protect employees from financial risks.
Wage protection system
The wage protection system is an innovative mechanism that secures the payment of employee salaries. It requires companies and establishments to fulfill wage obligations through approved financial institutions.
Emiratisation gains
The minister emphasized that the private sector saw an 11% rise in the number of employed Emiratis during the first quarter of 2023, resulting in a total of over 66,000 individuals. The number of companies that have hired UAE nationals has risen up by 13 percent. Emiratis now work in more than 16,000 companies.