The UAE has called on eligible employees in the country to sign up for the quick and easy Unemployment Insurance Scheme.
Workers in the country who lose their jobs can sign up for the low-cost scheme with ease and be paid up to AED60,000 ($16,340) in the event of losing their jobs.
Insurance is available from as little as AED60 ($16) and acts as a low-cost security net for people working in the UAE.
UAE Unemployment Insurance
The Ministry of Human Resources and Emiratisation (MoHRE) has highlighted “the quick and easy steps” to subscribe to the Unemployment Insurance Scheme, which supports the career path and living stability of employees in the UAE at no additional cost to employers.
The Ministry called on eligible employees to subscribe to the program, which was implemented on January 1, 2023.
The Insurance Pool’s website is the preferred channel for majority of subscribers to date.
Other channels available for subscription include the Insurance Pool’s app (IOLE), Kiosks, business service centres, money exchange centres such as Al Ansari, and bank smart apps, as well as SMS and telecom bills.
Subscribing to the scheme online can be done in four steps:
- Visit the website
- Click on “subscribe here” to access the registration page
- Select the relevant sector you are employed in; enter your personal identification data, phone number and verification code sent via SMS; choose your preferred payment interval (monthly, quarterly, semi-annual or annual); enter your email address
- Move onto the payment gateway to complete registration successfully.
The Unemployment Insurance Scheme covers employees in the federal government sector and the private sector, divided in two categories.
UAE Unemployment insurance Category A
The first category covers those with a basic salary of AED16,000 or less.
The insurance premium for the insured employee in this category is set at AED5 per month (AED60 annually), and monthly compensation is capped at AED10,000 per month.
The sum is capped at AED10,000 per month and is payable for three consecutive months.
The limit on unemployment insurance on this category, then, would be AED30,000 ($8,169) to be paid out on the annual fee of AED60.
UAE Unemployment insurance Category B
The second category includes those with a basic salary exceeding AED16,000, and the insurance premium is AED10 per month (AED120 annually) with a monthly compensation of up to AED20,000.
The sum is capped at AED20,000 per month and is payable for three consecutive months.
The limit on unemployment insurance on this category, then, would be AED60,000 ($16,338) to be paid out on the annual fee of AED120.
The insurance compensation can be claimed as long as the insurer (employee) has subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months.
The claim can be submitted within 30 days of job loss and will be processed within two weeks of submission.
The insured’s right to compensation is forfeited if they cancel their residency and leaves the country, or joins a new job, within the processing period.
The compensation is calculated at the rate of 60 per cent of the average basic salary for the last six months before unemployment and paid for a maximum of three months for each claim from the date of unemployment.
Those exempted from subscribing include investors – the owner of the facility in which he or she works, domestic helpers, employee with a temporary employment contract, juveniles under 18 years of age, and a retiree who receives a retirement pension and has joined a new job.
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