UAE mandatory insurance begins on January 1, here’s how to get $16,338 job loss cover

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) first announced the Unemployment Insurance Scheme for all government and private sector employees back in May and it is about to come into effect.

The MOHRE has now issued a video guide on social media to explain the benefits and costs of the UAE unemployment insurance.

In the video the MOHRE explains the two categories of insurance available to UAE workers.

Two categories of unemployment insurance are available, depending on the worker’s salary.

UAE Unemployment insurance Category A

Category A costs AED5 per month. It can be paid monthly, quarterly or annually.

This category of insurance is open to any employee who has a monthly salary of AED16,000 a month or below.

In the event of losing their job UAE workers would be entitled to 60 per cent of their average basic salary, calculated on an average of the six months leading up to unemployment.

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

Category B costs AED10 per month. It can be paid monthly, quarterly or annually.

This category of insurance is open to any employee who has a monthly salary above AED16,000 a month.

In the event of losing their job UAE workers would be entitled to 60 per cent of their average basic salary, calculated on an average of the six months leading up to unemployment.

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.

Insured amounts will not be applicable if the employee was dismissed for disciplinary reasons under the Labour Relations Law and Human Resources Law, in addition to any applicable legislation.

As has been previously reported on Arabian Business, the insured compensation will not be given if there has been fraud or deceit involved in the claim or if the listed place of employment is fictitious.

Fines and penalties will be issued in this case.

If the individual finds a job during the period of compensation entitlement, the payment will cease.

UAE employees can use the following subscription channels for the insurance scheme:

• Insurance Pool’s website and its smart application
• Bank ATMs and kiosk machines
• Business service centres
• Money exchange companies
• du and Etisalat
• SMS

According to the Insurance Pool website, in order to be eligible for compensation, the insured must meet the following criteria:

• There must be a minimum subscription period of 12 consecutive months for the insured in the scheme. Provided that there is no interruption in the subscription for three consecutive months
• The Insured was committed to pay all the insurance premiums due on time
• The Insured proves that the reason of unemployment is not due to resignation
• The Insured may not be dismissed for disciplinary reasons under the Labour Relations Law and the Human Resources Law of the federal government in addition to any applicable legislation
• Submit the claim within 30 days from the date of loss of the work relationship or the settlement of the labour complaint referred to the judiciary
• The Insured worker should not have an existing complaint related to the absence from work.
• The Insured shall not be entitled for compensation if there has been fraud or deceit involved in his claim or if the establishment where they work for is fictitious
• The Loss of Employment should not be the result of non-peaceful labour strikes or stoppages, whether they result in harm or not.
• The Insured must be legally present in the United Arab of Emirates