According to Federal Decree-Law No. 13 of 2022 Concerning the Unemployment Insurance Scheme issued by the Ministry of Human Resources and Emiratization, all Emirati and foreign employees working in the UAE’s public and private sectors are required to join the Unemployment Insurance Scheme.
What is Unemployment Insurance Scheme?
It is a social support program for employees in the public and private sectors that provides a cash payment for three months if they lose their job.
Is this unemployment scheme mandatory for employees?
Yes, it is mandatory for employees from January 1, 2023.
How does it work?
Employees must enroll in this insurance program by paying a subscription fee, which is divided into two categories based on the employee’s salary; the subscription can be paid monthly, quarterly, semi-annually, or annually.
How is compensation calculated?
The program provides compensation for three months following the termination of his job. The value of the compensation is determined by the scheme, which has two categories.
- Category 1, with a monthly subscription/premium of AED 5, whose basic salary is less than AED 16,000 and monthly compensation does not exceed AED 10,000.
- Category 2 with a monthly subscription/premium of AED 10, where the basic salary is greater than AED 16,000 Dh and the monthly compensation does not exceed AED 20,000.
Monthly compensation of 60 percent of the Basic salary is provided for a period of three months from the date of unemployment up to a maximum of AED 20,000.
What are the Eligibility Criteria?
- Any individual working in the public or private sector or foreign employee.
- Who has paid a premium with a minimum of 12 months.
- The employee must not be dismissed under disciplinary action under labor relations law.
- If the employee’s claim was fraudulent or deceptive, he or she will be denied compensation.
- The claim must be submitted within 30 days from the date of being jobless.
What are the Subscription Channels?
The employees can obtain subscriptions from the below channels.
- Insurance company websites.
- Insurers licensed by the Central Bank who meet the criteria for providing unemployment insurance
- Bank ATMs or Kiosk machines.
- Money exchange companies.
Who will provide the subscriptions.?
According to the MoHRE, the scheme will be offered by the Dubai Insurance Company, which is the representative of the insurance pool of nine companies:
- Dubai Insurance Company
- Abu Dhabi National Insurance Company
- Al Ain Ahlia Insurance Company
- Emirates Insurance Company
- National General Insurance Company
- Orient Insurance
- Abu Dhabi National Takaful Company
- Oman Insurance Company
- Orient UNB Takaful Company
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