A new unemployment insurance scheme will be introduced by the UAE

The new system will come into effect in January 2023.

The UAE has introduced a new unemployment insurance system for all residents working in the public and private sectors.

Coming into effect in January 2023, workers who lose their jobs will be entitled to monthly cash support for a limited period under the mandatory scheme.

The annual insurance package is believed to cost between AED 40 and AED 100 with employees having the option to pay more into the scheme.

Should an employee become unemployed, you could receive around 60 per cent of the basic salary with a maximum amount of AED 20,000 per month.

However, the duration of the scheme has not been revealed.

Authorities have also not said how contributions will be made and whether they will be paid through their employer or taken out of their pay.

The scheme who will not be applicable to investors, domestic workers, workers on temporary contracts, those under the age of 18 and retirees with pensions who join a new job.

It is hoped that the decision to introduce the unemployment insurance programme will draw and retain talent in the country across the private and public sector.

The news follows the introduction of new visa options to attract talent to the country.

 

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Image source Canva

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