Unemployment Insurance Scheme UAE

The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of termination by their employers. It aims to ensure continued decent living for the unemployed and achieve a competitive knowledge economy by attracting and retaining best international talent.

What is the ‘Unemployment Insurance scheme?

The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of termination by their employers.
The financial support will be given in exchange of a monthly insurance premium paid by the worker during his employment.

Scope of the scheme

The scheme applies to all workers in the private and federal sector except:

• investors, business owners who own and manage their business themselves
• domestic workers
• employees on a temporary basis
• juveniles under the age of 18
• retirees who receive pension and have joined a new employer.

Cost of subscription

1-Workers with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, i.e. AED 60 annually. The compensation for this category must not exceed a monthly amount of AED 10,000.
2-Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually. The compensation for this category must not exceed AED 20,000 monthly.

The worker may choose to pay the premium on a monthly, quarterly, half-yearly or on an annual basis.
The insured worker may, in coordination with the insurance company, subscribe to additional benefits in addition to the above basic package.
The value of the insurance policy is subject to VAT.

Channels for subscribing

Workers may subscribe to the scheme via ILOE Insurance Pool website and its app and any other channel which MoHRE may announce.


Federal government and private sector employees must subscribe to the scheme from 1 January 2023.
Related links:
How to subscribe to Unemployment Insurance scheme (PDF, 1.03 MB).

Filing for a compensation claim

The worker must submit the claim within 30 days from the date of his/her unemployment. The insurance company has two weeks, from receiving the claim, to transfer the compensation to the insured's account.
The insurance providers must process the insurance claims in accordance with the terms and conditions of the insurance policy and the applicable legislations of the Central Bank of the UAE.
Compensation will be paid from the date he/she loses the job and will be paid for 3 months or until he/she finds a job, whichever is earlier.
MoHRE will report any breach to the terms and conditions of the insurance policy by the insurance companies.
With respect to the employees of the federal government, Federal Authority for Government Human Resources will implement the mechanism of the ‘Unemployment Insurance Scheme’ in coordination with Ministry of Finance.

Eligibility

To be eligible for the compensation, the worker must have been paying the monthly premium for at least 12 consecutive months.

Suspension of the compensation

The insured worker will lose his/her eligibility for compensation if any of the following situations occur:

• he/she was dismissed from work for disciplinary reasons under the UAE’s Labour Law in the private sector (Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments) and the Human Resources Law in the federal government, in addition to any applicable legislations
• there has been fraud or deceit involved in his/her claim
• the establishment where he/she works is fictitious.

Objectives of the scheme

The insurance scheme aims to:

• provide the insured with income for a limited period of time during his/her unemployment
• enhance the competitiveness of Emiratis in the labour market
• provide social protection to ensure continued decent living for the unemployed
• achieve a competitive knowledge economy by attracting and retaining best international talent.

Regulations governing the ‘Unemployment Insurance Scheme

Federal Decree Law No. 13 of 2022 Concerning Unemployment Insurance Scheme (PDF, 507 KB)
Cabinet Resolution No. 97 of 2022 Concerning the Procedures and Controls for Implementing Unemployment Insurance Scheme (PDF, 779 KB).

Other Related tags for article:

Unemployment insurance uae

UAE unemployment insurance scheme

Unemployment insurance scheme uae

Dubai unemployment insurance

Unemployment insurance dubai

Dubai insurance unemployment

Unemployment scheme uae

Unemployment insurance uae online

Unemployment insurance in uae

UAE employment insurance

Dubai insurance unemployment insurance