UAE unemployment insurance scheme: Payouts, rules, and how to apply

The Ministry of Human Resources and Emiratisation (MoHRE) affirmed that the Unemployment Insurance Scheme provides unemployed workers with a cash benefit for a period not exceeding three months, or until alternative employment is found.

The Ministry has defined two categories of eligible beneficiaries:

• The first includes those with a basic salary of Dh16,000 or less.

• The second includes those earning more than Dh16,000 as a basic salary.

According to the Ministry’s digital platforms, the first category is entitled to a maximum monthly compensation of Dh10,000, while the second category is entitled to a maximum of Dh20,000.

The system offers a social protection umbrella that ensures a sustainable and decent standard of living for both UAE nationals and residents during unemployment, while mitigating business risks. It aims to enhance the competitiveness of Emirati talent and the UAE labor market’s appeal to top local and global professionals, contributing to building one of the world’s leading knowledge-based and competitive economies.

Three channels for claim submission

The Ministry stated that there are three channels to submit a compensation claim: the Insurance Pool Portal, the Insurance Pool smart application, and the Insurance Pool call center.

It added that the system aims to provide social protection to employees and their families during periods of unemployment by compensating the insured with a cash amount for a limited period, until an alternative job is available, in accordance with Federal Decree-Law No. (13) of 2022 concerning Unemployment Insurance.

The provisions of the Decree-Law apply to UAE nationals and residents working in both the federal government and private sectors.

Five exempted categories

The Ministry highlighted five categories exempt from the Decree-Law:

1. Investors (owners of establishments in which they work)

2. Domestic workers

3. Temporary contract workers

4. Juveniles under the age of 18

5. Retirees receiving a pension who have joined a new job

It confirmed that eligibility for compensation requires:

• A minimum of 12 consecutive months of subscription in the system

• The employee not being dismissed for disciplinary reasons under the Labour Relations Law or the Federal Government Human Resources Law

• The claim not being fraudulent or involving a fictitious employer

Compensation payments cease if the employee secures new employment during the eligibility period.

Maximum compensation period: 3 months

The maximum period for each claim is three months, with total coverage not exceeding 12 months over the insured’s entire service in the UAE labor market.

The Ministry stressed that compensation entitlement does not affect any other benefits due to the insured.

Ministerial Resolution No. (604) of 2022 regarding the Unemployment Insurance Scheme stipulates that the service provider must respond to the claim and disburse payment within two weeks of receiving an application that meets the eligibility conditions.

If the insured has a court-referred labor dispute concerning employment termination, they must submit a copy of the final court judgment to the service provider within 30 days of the ruling.

What is Unemployment Insurance?

It is a scheme that compensates the insured with a cash benefit for a limited period in the event of job loss, in accordance with:

• Federal Decree-Law No. (13) of 2022 on Unemployment Insurance

• Cabinet Resolution No. (97) of 2022 on implementing mechanisms

• Ministerial Resolution No. (604) of 2022 on the Unemployment Insurance Scheme

Scope of application

All employees in the federal government and private sectors are required to subscribe to the scheme by purchasing an insurance policy to secure coverage in case of job loss under the defined eligibility cases. The following categories are exempt:

1. Investors (owners working in their establishments)

2. Domestic workers

3. Temporary contract workers

4. Juveniles under 18 years old

5. UAE nationals eligible for retirement or retirees receiving a pension who have joined a new job

Objectives of the scheme

• Provide a social protection umbrella ensuring a decent living for workers and their families until alternative employment is available

• Guarantee a limited income for up to 3 months during unemployment

• Encourage Emiratis to join the private sector and benefit from governmental support and empowerment programs

• Enhance the competitiveness of Emirati talent and the appeal of the UAE labor market

• Attract and retain highly skilled global talent

Unemployment Insurance Scheme

In implementation of Federal Decree-Law No. (13) of 2022, this unique system offers financial security to employees who lose their jobs until they find new employment—provided the termination was not due to disciplinary action or resignation.

Eligible employees can receive a monthly cash compensation of up to 60 per cent of their average basic salary for the last six months prior to unemployment. Compensation is provided for a maximum of three months per claim, subject to at least 12 consecutive months of subscription to the insurance scheme.

Coverage

Compensation is calculated at 60% of the basic salary (based on the average of the last six months before unemployment).

• Category 1: Maximum Dh10,000 per month, for up to 3 months per claim

• Category 2: Maximum Dh20,000 per month, for up to 3 months per claim

Total compensation cannot exceed 12 months during the insured’s entire service in the UAE labor market, for all claims submitted during that period.