The Unemployment Insurance scheme in the UAE is a form of insurance or social security that provides financial support to Emiratis and residents working in the federal and private sectors. If they lose their jobs due to termination by their employer. This support is provided in exchange for a monthly insurance premium paid by the worker during their employment.
Eligibility for UIS in UAE
The scheme applies to all workers in the private and federal sectors, except for investors with Golden visas, business owners who own and manage their own businesses, domestic workers, employees on a temporary basis, juveniles under the age of 18, and retirees who receive a pension and have joined a new employer.
Workers with a basic salary of AED 16,000 or less. They will need to pay a monthly insurance premium of AED 5, or AED 60 annually. Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, or AED 120 annually. The worker has the option to pay the premium on a monthly, quarterly, semi-annual, or annual basis. The injured worker may also choose to subscribe to additional benefits in addition to the basic package, in coordination with the insurance company. The value of the insurance policy is subject to value-added tax (VAT).
Workers may subscribe to the scheme through the ILOE Insurance Pool website and app, as well as through any other channels announced by the Ministry of Human Resources and Emiratisation. The scheme is set to go into effect in January 2023, and federal government and private sector employees must subscribe to the scheme at that time.
How to Apply for Unemployment Insurance Scheme?
To file a claim for compensation, the worker must submit the claim within 30 days of becoming unemployed. The insurance company has two weeks from receiving the claim to transfer the compensation to the insured’s account. Compensation will be paid from the date of unemployment and will continue for three months or until the worker finds a new job, whichever comes first. The insurance company must process the claim in accordance with the terms and conditions of the insurance policy and the applicable legislation of the Central Bank of the UAE.
How to Claim the Compensation?
To be eligible for compensation, the worker must have been paying the monthly premium for at least 12 consecutive months. However, the worker will lose their eligibility if they are dismissed from work for disciplinary reasons, if there has been fraud or deceit involved in their claim, or if the establishment where they work is fictitious.
- Insurance Pool’s Website and its application
- Bank ATMs & kiosk Machines
- Business Service Centers
- Money Exchange Companies
- Du and Etisalat
- Other channels that MoHRE specifies with the service provider (Insurance Company)
Who Offers Insurance Policy?
- Dubai Insurance Company
- Abu Dhabi National Insurance Company
- Al Ain Ahlia Insurance Company
- Emirates Insurance Company
- National General Insurance Company
- Orient Insurance
- Abu Dhabi National Takaful Company
- Oman Insurance Company
- Orient UNB Takaful Company
What’s in it?
The objectives of the Unemployment Insurance scheme are to provide income for a limited period of time during unemployment, enhance the competitiveness of Emiratis in the labor market, provide social protection to ensure continued decent living for the unemployed, and attract and retain international talent in order to create a competitive knowledge economy.
The Ministry of Human Resources and Emiratization will report any breaches of the terms and conditions of the insurance policy by the insurance companies. The Federal Authority for Government Human Resources will implement the mechanism of the Unemployment Insurance scheme in coordination with the Ministry of Finance for federal government employees.
Overall, the Unemployment Insurance scheme in the UAE is a valuable resource for workers in the federal and private sectors, providing financial support and peace of mind in the event of unexpected job loss. It also aims to promote a competitive and skilled workforce, attracting top talent to the country. If you are an Emirati or resident working in the UAE, be sure to consider subscribing to this important insurance scheme.