The UAE implemented a compulsory Unemployment Insurance Scheme starting from January 1, 2023, which requires subscription before June 1. Failure to subscribe by the end of the grace period on June 30 will result in fines. The scheme extends to freezone and semi-government employees as well.
Individuals can acquire the insurance for as low as AED60 per year, providing coverage of up to AED60,000 for employees experiencing job loss.
To enroll in the scheme online, follow these four steps:
- Go to the website.
- Click on the “subscribe here” option to access the registration page.
- Choose the relevant sector of your employment, provide personal identification information, phone number, and enter the verification code received via SMS. Additionally, select your preferred payment interval (monthly, quarterly, semi-annual, or annual), and enter your email address.
- Proceed to the payment gateway to successfully complete the registration.
The scheme is divided into two categories: Category A is for individuals earning below AED16,000, while Category B is designed for those with earnings exceeding AED16,000.
Under Category A, employees are required to pay a monthly insurance premium of AED5 (AED60 annually). The maximum monthly compensation they can receive is set at AED10,000.
For Category B, the insurance premium is AED10 per month (AED120 annually) and the maximum monthly compensation is up to AED20,000.
To be eligible for compensation, the employee must have been subscribed to the job loss scheme for at least 12 months.
The compensation amount is calculated as 60 percent of the average base salary earned during the six months prior to the unemployment period. Payments are made for a maximum duration of three months per claim, starting from the date of unemployment.
Here’s everything you need to know about the UAE Unemployment Insurance:
- Deadline: The deadline for subscription is June 30, with a grace period of four months for workers who change their visa or start working in the UAE after January 1, 2023.
- Fine for non-subscription: A fine of AED400 applies for individuals who fail to subscribe to the insurance scheme.
- Fine for missed premium installments: AED200 will be charged for each missed premium installment.
- Exempted categories: Investors, company owners, domestic helpers, temporary contract workers, juveniles, and retirees are exempted from the insurance requirement.
- Subscription channels: The insurance can be obtained through the Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centers, money exchange companies, du, Etisalat, and SMS services.
- Minimum subscription period: To be eligible for pay-out, individuals must be subscribed to the insurance scheme for a minimum period of 12 months.
- Maximum compensation: The maximum compensation duration is three months per claim.
- Non-applicable situations: The insurance will not cover cases involving fraud or deceit in the claim, fictitious establishments, existing complaints, or as a result of non-peaceful labor strikes or stoppages.
