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UAE to Begin Fines and Work Bans for Uninsured Workers

  • Publish date: Thursday، 14 December 2023
UAE to Begin Fines and Work Bans for Uninsured Workers

Approximately 14% of eligible employees in the UAE have yet to acquire mandatory insurance against job loss, stated the Ministry of Human Resources and Emiratisation (MoHRE). The scheme, introduced in January 2023, closed for enrollment by October.

Read More: UAE Unemployment Insurance: Registration Deadline Announced

Fines and Payment Process

The Ministry clarified that workers who neglect to join the system are subject to a Dh400 fine, while those subscribed but missing premium payments face a Dh200 penalty. Payment and verification of fines can be accomplished through MoHRE's digital platforms or authorized business service centers. To ease the financial load on workers, the ministry allows requests for fine payment in installments.

Read More: UAE's digital healthcare has over 4MM insurance claims worth AED 1.2bn

Consequences and Compulsory Payments

MoHRE emphasized the importance of settling fines to avoid administrative repercussions. Failure to pay may lead to denial of new work permits, deduction from salaries, or cuts from end-of-service benefits. With over 6.7 million workers enrolled, the insurance guarantees financial compensation for up to three months post-employment loss.

Read More: Car insurance premiums fall by an average Dh169

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