The UAE has made it mandatory to subscribe into the UAE’s unemployment insurance scheme for all employees of federal government departments and private sector companies. The subscription to the scheme which commenced on January 1, 2023, has made it compulsory for the employees to be subscribed to a scheme before June 30, 2023.
Failure to subscribe to a scheme will be fined with Dh400, whereas a three months failure to pay the fine will be deducted from their wages.
Employees can pay the fines via the MOHRE website, app and ministry-approved business service centres. They can also apply for paying through installments or request a waiver via the same channels.
In order to be eligible for compensation, employees must have been subscribed to the scheme for at least 12 consecutive months. This means employees who sign up for the scheme in January 2023 will become eligible for compensation in the event of job loss in/after January 2024.
Spearheaded by the MoHRE, the insurance scheme has ultra-low monthly premiums that range from Dh5 to Dh10, with the insured getting 60 per cent of their basic salaries for three months in the event of job loss for reasons other than disciplinary action or resignation.