The UAE will roll out the new Unemployment Insurance Scheme from the New Year, which will offer up to AED20,000 per month to eligible employees in the federal government and private sector.
The new insurance scheme, announced by the Ministry of Human Resources and Emiratisation (MOHRE), will be opened to UAE nationals and residents.
The new scheme will commence from January 1, 2023.
It aims to protect employees by offering them maximum 3-month cash compensation as long as they did not resign or were dismissed for disciplinary reasons.
The insurance scheme, which will be offered under two categories, will have a marginal subscription fee and variable cash compensation.
In the first category, the scheme will be offered to employees with a basic salary up to AED16,000. The insurance cost under this category will be AED5 per month and monthly cash compensation will reach up to AED10,000.
The second category is for employees with a basic salary of more than AED16,000.
The monthly insurance cost for this category will be AED10. The monthly cash compensation for this category can reach up to AED20,000.
The compensation will be paid if a user has subscribed to the scheme for at least 12 consecutive months.
Investors or owners of establishments, domestic workers, employees with temporary employment contracts, juveniles under 18 years of age, and retirees with a pension and have joined a new job are not eligible to join this insurance scheme.
Follow us on
