The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced an extension on the deadline for unemployment insurance.
Employees in the UAE were required to subscribe to the mandatory job loss scheme by June 31 or face fines. However, the deadline has now been extended to October 1.
The announcement was made on Thursday via Twitter.
“The Ministry has extended the deadline for fines on non-subscribers to the Unemployment Insurance System. Now, you have until 1 October, 2023, instead of 1 July, to register and avoid an AED400 fine.
Benefit from the benefits available to UAE nationals and residents eligible for the Insurance and subscribe now via multiple subscription channels provided, including: the website, the insurance pool smart app (iloe), Kiosk machines, business service centres and exchangers (such as Al Ansari Exchange), banks smart applications, SMS and telecom companies’ bills,” the Ministry said.
The unemployment insurance initiative came into effect in the UAE on January 1, 2023.
Those who fail to subscribe by the deadline will be subject to an AED400 fine. Employees missing an installment for the UAE unemployment insurance will be fined AED200.
The mandatory job loss scheme is applicable to all employees in the country including those in freezones and semi-government entities.
The insurance scheme is divided in two categories – Category A, for those who earn a monthly salary below AED16,000 and Category B, for those who earn a monthly salary over AED16,000.
The insurance starts at a cost as low as AED5, with a coverage up to AED60,000.
In order to be eligible for payout, the employee must have been subscribed to the insurance scheme for a minimum of 12 months.
All you need to know about UAE unemployment insurance
- Deadline: Six months until June 30. Workers who change their visa or begin work in the UAE after January 1, 2023, will have a grace period of four months
- Fine for non-subscription: AED400
- Fine for missing installment premium: AED200
- Exempted categories: Investors/company owners, domestic helpers, temporary contract workers, juveniles and retirees
- Subscription channels: Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS
- Minimum subscription period: 12 months for eligibility of pay-out
- Maximum compensation: Three months
- Non-applicable: Fraud or deceit involved in his claim or if the establishment where they work for is fictitious, existing complaints, result of non-peaceful labour strikes or stoppages
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