Unemployment Insurance Scheme Fines to be Cut from Employees Salary

Publish date: Thursday، 05 January 2023

UAE private sector employees and federal government departments must subscribe to the UAE Unemployment Insurance Scheme (UIS) launched on January 1, 2023.

If an employee fails to subscribe to the UIS before June 30, then he or she will have to pay a fine of AED 400.

According to the ministerial resolution on how fines will be collected, “Workers/employees who fail to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Ministry (of Human Resources and Emiratisation).”

It's important to note that the insurance gets canceled if an employee fails to pay the premiums for more than three months. In this case, the employee will have to pay a fine of AED 200.

Until all due fines are paid “within the specified timeframe”, the employee will not be eligible for a new work permit.

If the employer colludes with the employee to get unemployment insurance benefits, the ministry will implement an administrative penalty of AED 20,000.

How to Pay Fines

Employees can pay the fines through the MOHRE website, app and ministry-approved business service centres. Fines payments can be made in installments or request a waiver via the same channels.

Unemployment Insurance Scheme Fines to be Cut from Employees Salary

How to Pay Fines

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Unemployment Insurance Scheme Fines to be Cut from Employees Salary

How to Pay Fines

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