UAE's Mandatory Job Loss Insurance Enrolls Over One Million Employees
- Publish date: Thursday، 06 April 2023 | Last update: since a day
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The Ministry of Human Resources and Emiratisation (MoHRE) has reported that the UAE's Unemployment Insurance Scheme has surpassed one million members since its inauguration in January 2023. As of June 30, 2023, all workers are required to enroll in the scheme, with a Dh400 penalty for those who fail to do so.
The program serves employees in both the federal government and private industries, providing an affordable safety net for job security that encourages career advancement and living stability in the UAE.
Dr Abdulrahman Al Awar, the Minister of Human Resources and Emiratization, has stated that the Unemployment Insurance Scheme has had a positive effect on the labor market and is a driving force for the UAE's economic sectors. He has urged eligible individuals to subscribe to the scheme and requested employers to encourage their employees to do the same.
Some groups are exempt from subscribing, such as owners of facilities, investors, temporary contract workers, juveniles, and retirees with retirement pensions who have taken up new jobs.
The insurance is divided into two categories, with the first category covering employees with a basic salary of Dh16,000 or below and the second category covering those with a higher basic salary. The premium for the first category is Dh5 per month, with a monthly compensation limit of Dh10,000, while the premium for the second category is Dh10 per month, with a monthly compensation limit of Dh20,000.
Insurance compensation can be requested by an insured individual who has been enrolled in the insurance scheme for at least 12 months continuously. If the insured person experiences job loss, they can file a claim within 30 days of the event. The insurance company will then process the claim within two weeks after it has been submitted.