UAE: 5.73 million subscribe to unemployment insurance scheme

Dubai: The Ministry of Human Resources and Emiratisation (MoHRE) revealed that approximately 5.73 million employees have subscribed to the Unemployment Insurance Scheme since it went into effect on January 1, 2023, up until September 25 Including more than 5.6 million subscribers in the private sector and more than 87 thousand subscribers in the federal government sector.

Deadline

The Ministry made the announcement as the deadline for subscribing in the system approaches, where starting from October 1, 2023, a Dh400 penalty will be applied to those eligible for the system who have not subscribed.

The MoHRE issued a press statement urging those eligible for the system to register immediately in order to avoid fines and benefit from the advantages it offers.

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The Unemployment Insurance Scheme is divided into two categories: the first covering those with a basic salary of Dh16,000 and under, where the insurance premium for the insured employee in this category is set at AED5 per month (AED60 annually), and the maximum monthly compensation is set at Dh10,000.

Meanwhile, the second category includes those with a basic salary exceeding Dh16,000, and the insurance premium is Dh10 per month (Dh120 annually).

The insured’s right to compensation is forfeited in the event that he/she cancels their residency and leaves the country or joins a new job, within the processing period. The claim will be processed within two weeks of submission.

The compensation is calculated at the rate of 60 per cent of the average basic salary in the last six months before unemployment, and paid for a maximum of three months for each claim from the date of unemployment, provided the employee in question was not terminated for disciplinary reasons, and has not voluntarily resigned.