The UAE has announced more than one million people have signed up for Unemployment Insurance since it was launched on January 1, this year.
The mandatory job loss insurance scheme looks to protect workers in the event of unexpectedly losing their job in the UAE.
It is aimed at supporting employee’s professional path and lifestyle in the UAE labour market without imposing any additional cost to the employers.
UAE Unemployment Insurance
In a post on social media the Ministry of Human Resources and Emiratisation revealed that there are now more than one million subscribers in the scheme, and called on public and private sector workers to sign up.
The insurance is mandatory and costs as little as AED5 per month. The fine for non-subscription to the UAE Unemployment Insurance scheme is AED400.
People signed up for the scheme are eligible for up to $16,338 payment in case they lose their job.
Two categories of unemployment insurance are available, depending on the worker’s salary.
UAE unemployment insurance category A
Category A costs AED5 per month. It can be paid monthly, quarterly or annually.
This category of insurance is open to any employee who has a monthly salary of AED16,000 a month or below.
In the event of losing their job UAE workers would be entitled to 60 per cent of their average basic salary, calculated on an average of the six months leading up to unemployment.
The sum is capped at AED10,000 per month and is payable for three consecutive months.
The limit on unemployment insurance on this category, then, would be AED30,000 ($8,169) to be paid out on the annual fee of AED60.
UAE unemployment insurance category B
Category B costs AED10 per month. It can be paid monthly, quarterly or annually.
This category of insurance is open to any employee who has a monthly salary above AED16,000 a month.
In the event of losing their job workers would be entitled to 60 per cent of their average basic salary, calculated on an average of the six months leading up to unemployment.
The sum is capped at AED20,000 per month and is payable for three consecutive months.
The employee can choose to pay the premium monthly, quarterly, once every six months or annually.
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