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Who Pays for Unemployment Insurance Scheme? Employee or Employer?

  • Publish date: Wednesday، 04 January 2023
Who Pays for Unemployment Insurance Scheme? Employee or Employer?

The mandatory job loss insurance scheme which came into effect on January 1, 2023, does not require employers in the UAE to register their employees nor pay.

Employees in the UAE in the private sector and the federal government must subscribe to the insurance scheme by June 30, failing which they will be subject to a Dh400 fine.

The scheme has been categorised into two parts. Employees earning a basic salary of less than Dh16,000 or below are required to pay Dh5 plus VAT per month. Meanwhile, employees earning a basic salary of more than Dh16,000 are required to pay Dh10 plus VAT per month. The payment can be made on a monthly, quarterly, semi-annually and annual basis.

Read More: What We Know About Unemployment Insurance in UAE so Far

Read More: UAE Unemployment Insurance: Related Conditions and Rules

Read More: UAE Unemployment Insurance: Registration Deadline Announced

The employees will be eligible for 60 per cent of their basic salary for three months in case of involuntary loss of job.

Companies are not allowed to register its employees for the insurance scheme and then deduct the money from their salary. The employee must subscribe to the scheme himself

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