Your work visa renewals will be suspended until fines on the UAE unemployment insurance scheme are paid off
In 2022, the UAE introduced an unemployment insurance scheme to create a safety net for working residents. While the initial deadline was due in July, it was pushed to 1 October to allow workers time to register.
However, a new announcement states that employees who failed to meet the postponed deadline will not be able to renew their work visas until they pay off fines.
The Ministry of Human Resources and Emiratisation said financial penalties would be deducted from salaries or end-of-service gratuities as part of ‘administrative measures’ in place.
You might also like: Need more information on the unemployment insurance scheme?
Earlier, workers were informed of an AED 400 fine over missing the deadline, with an additional AED 200 fine imposed on those who didn’t pay insurance premiums within three months of the due date.
The ministry issued the warning as it announced that more than 6.6 million people have registered with the flagship social security scheme, which was launched in January.
All you need to know about the UAE’s unemployment insurance scheme
Since its beginning in 2022, UAE nationals and residents working in the federal government or the private sector have been eligible to compensation under the scheme following a loss of job.
Subscribers to the unemployment insurance scheme can make a single payment to cover the year’s subscription or quarterly or monthly payments.
Those exempt from applying for the unemployment insurance scheme include investors
domestic helpers, temporary-contract workers, juveniles under 18, retirees entitled to a pension who have joined another job and employees working in free zones.
Check out Team Yalla’s step-by-step guide to subscribe.
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