UAE unemployment insurance: What happens when you do not sign up?

The UAE Ministry of Human Resources and Emiratisation (MoHRE) will place a fine of AED400 ($109) on those who have not signed up.

The MoHRE had previously encouraged all employees to complete their registration before the October 1 deadline to avoid these fines.

The UAE unemployment insurance scheme applies to a broad range of workers, including those in the federal and private sectors, UAE citizens, residents, and employees in free zones.

This was introduced in May last year, and provides security for both Emiratis and UAE residents.

It offers financial assistance for a period of three months in case of employment termination.

According to the Ministry, over 5.7 million employees have already subscribed to this labour initiative since its implementation on January 1.

The subscription fee varies, with workers earning basic monthly salaries of AED16,000 or less paying AED5 per month, while those earning more than AED16,000 pay AED10 per month.

Employees can also choose to subscribe to additional insurance benefits and subscriptions can be completed online.

It is important to note that even registered employees may still face fines if they fail to maintain their insurance payments, with fines of AED200 imposed for overdue premiums to potential cancellation of the worker’s insurance certificate.

However, exemptions are granted to individuals such as company owners, domestic staff, temporary contract workers, those under 18, and retirees receiving a pension who have re-entered the workforce.

To be eligible for compensation in case of job loss, participants must have been registered in the scheme for at least 12 months and must submit their compensation request within 30 days of leaving work.

Payments are calculated at 60 percent of the individual’s basic salary, with a maximum payout of AED20,000 per month for a period of up to three months.