UNEMPLOYMENT INSURANCE SCHEME: Just one week left to apply, here’s all you need to know

Those who don’t sign up for the UAE Unemployment Insurance scheme by the end of this week will get fined!

What’s happening?


All federal government and private sector employees will have to subscribe by the end of September so they can benefit from UAE’s new social security support programme.

According to an announcement by the Ministry of Human Resources and Emiratisation, the tie-up with nine local insurance companies has allowed to set up the Unemployment Insurance Scheme. While the initial deadline was 1 July, it was postponed multiple times to give residents more time to sign up.


How does it work?


The insurance programme is divided into two basic categories –

  • The first covers employees earning a basic salary of AED 16,000 or less. The insurance cost for employees will be either AED 5 pm, or AED 60 pa. The compensation will not exceed AED 10,000 a month (calculated at a rate of 60 per cent of the basic salary).
  • The second group includes those earning basic salaries of AED 16,000 and upwards. Insurance costs here are AED 10 pm, AED 120 pa. The compensation will not exceed AED 20,000 a month (calculated at a rate of 60 per cent of the basic salary).

In both cases, it’s the employees who will be paying premiums (monthly, quarterly, half-yearly, or annually), with no additional costs to the employers. According to a report by WAM,  the value of the insurance policy is subject to value added tax (VAT).


How do I avail it?


The claims must be within 30 days from the date of unemployment via the insurance pool’s website, e-portal, smart application, call centre, or any other channel as decided by the MoHRE. From then, the payouts can be expected within two weeks for up to three months or till the person gets a new job (whichever comes first).


Am I eligible?


Employees who have worked and subscribed to the insurance scheme for at least 12 months, and are not dismissed for a disciplinary reason can avail of the same.

However, you are not eligible in the case of shifting jobs or countries. Other employees who are not eligible include –

  • Investors – owners of establishments in which he or she works
  • Domestic helpers
  • Employees with a temporary employment contract
  • Juveniles under 18 years of age
  • Retirees who receive a retirement pension and have joined a new job.


Thanks to this scheme, Emiratis and UAE residents will have a social security programme that can ensure a decent life in the country during unemployment, and also minimise business risks.

What happens if you don’t sign up? Well, you could face a fine of AED 400 if you don’t sign up.


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