UAE Unemployment Insurance Scheme launches today

The Ministry of Human Resources and Emiratisation (MoHRE) announced the launch of the ‘Unemployment Insurance Scheme’ for government and private sector employees, on Tuesday.

The compensation will be paid on a monthly basis, calculated on 60 percent of the employee’s basic salary and subject to a maximum of AED20,000 per month, for a period of three months from the date of unemployment.

The new law applies to all employees in the federal government and the private sector in the UAE, excluding investors, domestic helpers, part-time employees, retirees who have a retirement pension and those under the age of 18.

The new system will provide a social security scheme that ensures the sustainability of a decent life for Emiratis and resident employees during their unemployment period, said the Ministry, WAM reported.

It also aims to enhance competitiveness of UAE nationals, boosts attractiveness for the UAE job market to contribute to building the best global competitive knowledge-based economy, the Ministry explained.

“The decree reflects the UAE government’s approach in developing the business environment and enhancing the UAE’s position as a preferred destination to work and live, which is confirmed by global indices. Reports showed the preference of people worldwide to work and settle in the UAE because of the advantages it provides in terms of security, safety, job benefits, as well as the level of education, health, and quality of life,” said Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.

To be eligible for compensation, the employee must have been insured for at least 12 months, calculated from the date of subscription.

Employees who have been dismissed for disciplinary reasons will not be eligible.

If an employee joins a new job during the compensation period, the compensation will be suspended.