UAE unemployment insurance: Deadline, fines announced

Employees have a grace period of six months - until June 30 - to subscribe to the unemployment insurance scheme, which came into effect at the start of the year.

It's mandatory for federal government and private sector workers to enrol but those working in the free zone are currently exempted.

Eligible employees who fail to register could also be fined if they fail to meet the deadline.

Shiraz Sethi, Regional Head of Employment at the law firm Dentons Middle East, shared the details with The Agenda on Dubai Eye 103.8.

The scheme provides a security net for employees who lose their jobs due to reasons other than disciplinary action or resignation.

They will be compensated with a monthly cash benefit of up to 60 per cent of their average basic salary but capped at AED 20,000.

The unemployment cover will be for up to three consecutive months.

The insurance cost for employees earning a basic salary of up to AED 16,000 (Category A) has been set at AED 5 a month, while those who earn more than AED 16,000 (Category B) will pay AED 10 a month.

The payment can be made by the employee monthly, quarterly, half-yearly, or on an annual basis.

Exempted categories include investors (owners of companies they work at), domestic helpers, temporary-contract workers, juveniles under the age of 18, retirees who are entitled to a pension and have joined a new job, and employees working in free zones.

You can NOW subscribe to the Unemployment Insurance Scheme if you’re an employee in the federal government or the private sector – applicable to UAE nationals and expats. The fees are AED60 per year for those with a basic salary of AED16,000 or less pic.twitter.com/4v6ZfFoGv8

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 1, 2023

and AED120 annually for those with a basic salary that exceeds AED16,000. For any queries, reach out to the Insurance Pool on 600599555.

Tap the following link to subscribe to the insurance: https://t.co/yEZ9LZV740

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 1, 2023

The Insurance pool, which is represented by Dubai Insurance, is responsible for providing the service.

Employees can subscribe via the insurance pool’s website and its smart app, as well as bank ATMs, kiosk machines, business service centres, money exchange companies, du and Etisalat or by SMS.