UAE’s Ministry of Human Resources and Emiratisation has stated that the nation’s new unemployment insurance scheme – which was initially announced by the Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum in a post on Twitter – will be applicable to all UAE citizens and residents.
The unemployment insurance programme will offer each UAE resident the option to pay a minimum of AED 40 and a maximum of AED 100 per year into an insurance scheme.
The programme will go into effect in January 2023, Dr Abdulrahman Abdulmannan Al Awar, the Minister of Human Resources and Emiratisation, said in a media briefing.
In the event that UAE workers lose their jobs, they will be eligible to receive 60 percent of their basic salary each month, or up to AED 20,000.
“The unemployment insurance system aims to enhance the competitiveness of the labour market, provide a social umbrella for its workers, and establish a stable work environment for all,” Sheikh Mohammed bin Rashid said in a post on Twitter.
The scheme aims to provide financial security and ensure the availability of income for the workers during their unemployment, until alternative job opportunities are made available.
Dr Al Awar said: “We have ensured that the scheme is flexible to allow the workers to agree on additional benefits with the insurance service provider, to reduce risks in the labour market for individuals, and increase flexibility for companies to deal with changes, thus, enhancing competitiveness and supporting stable living standards for families even during unemployment.”
He added that the insurance scheme will ensure a decent life for UAE workers, but will also help attract and retain top talent and skilled workers from around the world to the UAE’s public and private sectors.
The of Human Resources and Emiratisation will develop a mechanism to create and operate the scheme, its application and subscription fees, and any necessary requirements or procedures to ensure its success and governance.
The ministry will also monitor the work of insurance service providers to ensure the best results are achieved for both workers and companies.
The scheme’s unique guarantees, offered to all workers in the country, enhance the UAE business environment’s ability to attract and retain the best international talent and skilled workers by reducing business risks in a way that promotes the launch of projects and attracts talents who can contribute to building a competitive knowledge-based economy, Dr Al Awar concluded.
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