UAE Unemployment Insurance Scheme
The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors with financial support if they lose their jobs, as a result of termination by their employers. It aims to ensure continued decent living for the unemployed and achieve a competitive knowledge economy by attracting and retaining best international talent. Federal Decree- Law No. 13 of 2022 Concerning Unemployment Insurance Scheme issued for Providing the insured with income for a limited period of time during the period of his unemployment until an alternative employment opportunity becomes available. The Ministry of Human Resources and Emiratisation (MOHRE) has announced that Employees of private sector companies and federal government departments can subscribe to the Unemployment Insurance Scheme from as low as Dh5 per month. The scheme offers a cash benefit for a limited period not exceeding three consecutive months per claim, in the event of job loss due to a non-disciplinary reason. Who will provide the insurance? According to the MOHRE, the scheme will be offered by the Dubai Insurance Company, which is the representative of the insurance pool consisting 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 Premiums and compensation Based on the subscription salary, the insured shall pay the value of the insurance premium for the basic insurance package as follows: a. First Category: Not more than (5) five dirhams per month if the subscription salary does not exceed (16,000) sixteen thousand dirhams. b. Second Category: Not more than (10) ten dirhams per month if the subscription salary exceeds (16,000) sixteen thousand dirhams. How claims are calculated >> The monthly compensation will be 60 per cent of the average salary over the most recent 12 months prior to job loss. >> Maximum compensation for any one claim: Three consecutive months >> Maximum period of benefits: During the insurance period over the entire work life of the insured in the UAE, the aggregate claim payment shall not exceed 12 monthly benefits (regardless of the number of claims submitted) Eligibility criteria In order to be eligible for compensation, the insured must meet the following conditions: Minimum subscription period is 12 consecutive months. All insurance premiums must have been paid on time. The reason for unemployment should not be resignation. Job loss must not have been due to a disciplinary reason. The claim must be submitted within 30 days from the date of job loss. The worker should not have an existing complaint related to absence from work. The employee will not be entitled for compensation if there has been fraud or deceit involved in his/her claim. The loss of employment should not be the result of non-peaceful labor strikes or stoppages. The insured must be legally present in the UAE. Governance Procedures for the Unemployment Insurance Scheme The service provider must process insurance claims in accordance with the terms and conditions of the insurance policy and the applicable legislation of the Central Bank. Any breach to the terms and conditions of the insurance policy by the service provider will be reported to the Central Bank by the Ministry. Disputes arising from the policy shall be resolved in accordance with the Central Bank's procedure.
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