Understanding UAE Unemployment Insurance
The United Arab Emirates (UAE) has one of the lowest unemployment rates in the world, but it is important to understand the unemployment insurance system in case you find yourself out of a job. This article will provide a comprehensive guide to UAE unemployment insurance, including who is eligible, how to apply, and what benefits you can expect to receive.
Eligibility for UAE Unemployment Insurance
To be eligible for unemployment insurance in the UAE, you must meet the following criteria:
- You must be a UAE national or a resident with a valid work permit.
- You must have been employed for at least 12 months in the last 2 years.
- You must have lost your job through no fault of your own, such as company downsizing or closure.
Applying for UAE Unemployment Insurance
If you meet the eligibility criteria, you can apply for unemployment insurance by visiting the Ministry of Human Resources and Emiratization (MOHRE) and providing the following documentation:
- A copy of your Emirates ID or passport.
- A copy of your work permit.
- A copy of your employment contract.
- A letter from your previous employer confirming the reason for your job loss.
Benefits of UAE Unemployment Insurance
Once your application is approved, you will be eligible to receive the following benefits:
- A monthly allowance for up to 6 months, which is equivalent to 60% of your last salary.
- Access to job search assistance and training programs.
- Medical insurance coverage for the duration of your benefits.
How to apply for unemployment insurance in UAE?
In order to apply for job loss insurance, employees can contact one of the firms in UAE to purchase the policy and make payment for the insurance premium.
The scheme will be offered by the Dubai Insurance Company, which is the representative of the insurance pool consisting of nine companies:
- 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
Employees can subscribe to the insurance programme in a number of ways, including through:
- Insurance pool’s website (www.iloe.ae) and smart application
- Bank ATMs and kiosk machines
- Business service centres
- Money exchange companies
- du and Etisalat
The application process for the UIS is relatively straightforward. Here are the steps that need to be followed:
- Register as a job seeker with the MOHRE: This can be done online or in person at a MOHRE service center.
- Submit an application for the UIS: This can also be done online or in person at a MOHRE service center. The following documents will be required:
- A copy of the individual’s Emirates ID or passport
- A copy of their valid work permit (if applicable)
- A copy of their last salary certificate
- A letter from the employer confirming the reason for the job loss
- Attend an interview with a MOHRE representative: This is to verify the information provided in the application and to determine the individual’s eligibility for the UIS.
Cost of subscription
1-Workers with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, i.e. AED 60 annually. The compensation for this category must not exceed a monthly amount of AED 10,000.
2-Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually. The compensation for this category must not exceed AED 20,000 monthly.
The worker may choose to pay the premium on a monthly, quarterly, half-yearly or on an annual basis.
The insured worker may, in coordination with the insurance company, subscribe to additional benefits in addition to the above basic package.
The value of the insurance policy is subject to VAT.
Federal government and private sector employees must subscribe to the scheme from 1 January 2023.
- How to subscribe to Unemployment Insurance scheme (PDF, 1.03 MB).
Filing for a compensation claim
The worker must submit the claim within 30 days from the date of his/her unemployment. The insurance company has two weeks, from receiving the claim, to transfer the compensation to the insured’s account.
The insurance providers must process the insurance claims in accordance with the terms and conditions of the insurance policy and the applicable legislations of the Central Bank of the UAE.
Compensation will be paid from the date he/she loses the job and will be paid for 3 months or until he/she finds a job, whichever is earlier.
MoHRE will report any breach to the terms and conditions of the insurance policy by the insurance companies.
With respect to the employees of the federal government, Federal Authority for Government Human Resources will implement the mechanism of the ‘Unemployment Insurance Scheme’ in coordination with Ministry of Finance
UAE unemployment insurance is a valuable resource for those who find themselves out of a job through no fault of their own. By understanding the eligibility requirements, application process, and benefits available, you can be better prepared in case you find yourself in this situation. It is also important to note that there are other programs available to support job seekers, such as the Tawteen program which is designed to support UAE national job seekers and help them find suitable employment.