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UAE’s unemployment insurance scheme starts from January 1
The insurance compensation will be calculated at 60 percent of the employee’s basic salary in the last six months prior to their unemployment

Federal government and private sector employees have been urged to subscribe to the UAE’s new unemployment insurance scheme.

Represented by Dubai Insurance, the scheme aims to create a low-cost job safety net that supports employees, providing career stability at no cost to employers.

Anyone losing their job due to termination of services, except for disciplinary reasons or resignation, will be entitled to a maximum three-month cash compensation, according to the UAE Ministry of Human Resources and Emiratisation.

Subscription fees depend on the employee’s basic salary and can be paid monthly, quarterly, once every six months, or annually. Those earning AED16,000 ($4,356.35) or less will pay a subscription fee of AED5 per month (AED60 annually). Employees with a basic salary exceeding AED16,000 will pay a subscription fee of AED10 per month (AED120 annually).

The first category will be eligible for monthly cash compensation of up to AED10,000, while the maximum monthly cash compensation for the second category will be AED20,000.

Insurance compensation will be calculated at 60 percent of the employee’s basic salary in the last six months prior to their unemployment and will be paid within two weeks from the date the claim is submitted. 

The insured must be subscribed for at least 12 consecutive months to be eligible for cash compensation. However, under the guidelines issued, compensation claims end should they leave the country or take up a new job.

Investors – owners of establishments, domestic workers, temporary contract workers, juveniles under 18 years, and retirees who receive a pension and join a new job, are not eligible to subscribe to the scheme.

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