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UAE’s unemployment insurance scheme: 60,000 subscribers in two days

Ninety per cent of the participants chose to subscribe to the scheme annually



An individual has to be subscribed to the scheme for at least 12 consecutive months to be eligible for the benefit.
Image Credit: Ahmed Ramzan/Gulf News

Dubai: As many as 60,000 employees subscribed to the UAE’s unemployment insurance programme within two days of it coming into effect, authorities said on Tuesday.

The scheme, which started on January 1, saw 86 per cent participants signing up via the official website, the Ministry of Human Resources and Emiratisation said.

Ninety per cent of the participants chose to subscribe to the scheme annually, the ministry added.

Stemming from the Federal Decree-Law No. 13 of 2022, the Unemployment Insurance Scheme aims to create a low-cost job safety net that supports employees in their professional journey, providing them with career stability with no cost on employers.

More on Unemployment Insurance Scheme

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The scheme

The subscription fee depends on the employee’s basic salary. The first category is of those with a basic salary of Dh16,000 or less; their subscription fee is Dh5 per month (Dh60 annually), whereas, the second category is those with a basic salary exceeding Dh16,000; their subscription fee is Dh10 per month (Dh120 annually). The maximum monthly compensation amount is Dh10,000 in the first category, and Dh20,000 in the second.

If the insured employee does not resign or is not fired for disciplinary grounds, the insurance pays him a sum for a maximum of three months. The pay is calculated on 60 per cent of the basic salary in the last six months before being unemployed.

The compensation will be paid within two weeks following the claim date. The participant has the choice to pay the premium quarterly, monthly, semi-annually, or annually .

An individual has to be subscribed to the scheme for at least 12 consecutive months to be eligible for the benefit. The person forfeits his right to the claim if he leaves the country or accepts a new position.

The exempted categories for the scheme are investors or owners of establishments, domestic workers, temporary contract workers, juveniles (under 18 years), and retirees who receive a pension and joined a new job.

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