UAE has introduced an unemployment insurance scheme for all employees in the country. The scheme is mandatory and those who have not subscribed by the deadline of June 1 will face fines following the one month grace period ending on June 30.
The mandatory job loss insurance is applicable for all employees in the Emirates including freezone and semi-government workers.
The scheme is divided into two categories, Category A is for those who earn below AED16,000 and Category B is for workers who earn over AED16,000 and starts at a cost for as less as AED5 with a coverage of up to AED60,000.
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Subscribing to the scheme online can be done in four steps:
- Visit the website
- Click on “subscribe here” to access the registration page
- Select the relevant sector you are employed in; enter your personal identification data, phone number and verification code sent via SMS; choose your preferred payment interval (monthly, quarterly, semi-annual or annual); enter your email address
- Move onto the payment gateway to complete registration successfully.
The subscriber is only eligible for the compensation if they have signed up for the insurance for a period of at least 12 months. Prior to the 12 month period, no compensation will be provided in the case of job loss.
Compensation payments are made for a maximum duration of three months, per claim, starting from the date of unemployment.
Fines for non-subscription will be AED400 and fines for missing payment of the installment premium will be AED200.
Those who have lost jobs due to fraud, deceit, complains, non-peaceful labour strikes or stoppages or working in a fictitious organisation will not be eligible for the job loss compensation amount.
All you need to know about UAE Unemployment Insurance
- Deadline: Six months until June 30. Workers who change their visa or begin work in the UAE after January 1, 2023, will have a grace period of four months
- Fine for non-subscription: AED400
- Fine for missing installment premium: AED200
- Exempted categories: Investors/company owners, domestic helpers, temporary contract workers, juveniles and retirees
- Subscription channels: Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS
- Minimum subscription period: 12 months for eligibility of pay-out
- Maximum compensation: Three months
- Non-applicable: Fraud or deceit involved in his claim or if the establishment where they work for is fictitious, existing complaints, result of non-peaceful labour strikes or stoppages
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