DUBAI, UAE – UAE Ministry of Human Resources and Emiratization (MoHRE) announced that the Unemployment Insurance Scheme has exceeded one million subscribers since its launch in January 2023.
The Unemployment Insurance Scheme covers employees in the federal government sector and the private sector, providing low-cost job security net that supports the career path and living stability of employees in the UAE.
It also aims to boost the labor market’s competitiveness by adopting innovative mechanisms without additional costs on employers.
Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratization, highlighted that the scheme is a pillar of the legislative infrastructure that aims to attract Emirati and international talents and empower them.
He said that the scheme has had a positive impact on the labor market, noting that it is a driver of growth for the UAE’s economic sectors.
He called on those who are eligible to subscribe to the Unemployment Insurance Scheme to benefit from its insurance coverage, and on employers to encourage their employees to subscribe.
The insurance is divided into two categories – the first covering those with a basic salary of AED16,000 (US$4356.7 ) and less.
The insurance premium for the insured employee in this category is set at AED5 (US$1.36) per month (US$16.33 -AED60 annually), and monthly compensation is capped at AED10,000 US$2722.9) per month.
The second category includes those with a basic salary exceeding AED16,000 (US$4356.7) and the insurance premium is AED10 (US$2.7) per month (AED120 annually) with a monthly compensation of up to AED20,000 (US$5445.8).
The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months.
The claim can be submitted within 30 days of job loss and will be processed within two weeks of submission.
The insured’s right to compensation is forfeited in the event that he/she cancels their residency and leaves the country, or joins a new job, within the processing period.
The compensation is calculated at the rate of 60 percent of the average basic salary in the last six months before unemployment, and paid for a maximum of three months for each claim from the date of unemployment.
Those exempted from subscribing include investors – owners of facilities in which they work, domestic helpers, employees with a temporary employment contract, juveniles under 18 years of age, and retirees who receive a retirement pension and have joined a new job.
Employees may subscribe to the Unemployment Insurance Scheme via the Insurance Pool’s website (www.iloe.ae), smart application (ILOE), bank smart phone applications, kiosk machines, business service centers, money exchanges (such as Al Ansari Exchange), SMS and telecommunication bills.