Starting from January 1, 2023, all employees – both Emiratis or expatriates – working in the private and federal government sectors are required to register for the involuntary loss of employment scheme. But investors, domestic helpers, temporary contract workers, juveniles under the age of 18 and retirees who’re entitled to a pension and joined a new job are exempted from registering for the scheme.
Employees with a basic salary of less than Dh16,000 are required to pay Dh5 per month or Dh60 per annum plus VAT as a premium. They will be compensated with 60 per cent of the average basic salary for the job loss for three consecutive months.
Employees with a basic salary of over Dh16,000 are required to pay Dh10 a month or Dh120 annual premium under this scheme.
The policy period is available for one or two years. Subscription is free of charge from Dubai Insurance but other channels such as exchange houses, telecom firms and banks could charge an additional fee for the services.