Picture for illustrative purposes only. ARCHIVE

October 1, 2024 marks one year since registration for the UAE's Unemployment Insurance Scheme became mandatory for all government and private sector employees. The scheme, which was launched on January 1, 2023, aims to provide financial compensation for employees who lose their jobs due to circumstances beyond their control. On its launch, authorities extended the deadline for employed individuals to register for this insurance last October 1, 2023, with newly employed individuals after October 1 also required to register. Eligible employees who fail to register for the insurance scheme face a penalty of Dh400. Here’s a detailed Q&A on the scheme:

What is the UAE Unemployment Insurance Scheme?

The UAE Unemployment Insurance Scheme provides cash compensation to employees in the private sector and federal government for up to three months if they lose their jobs for reasons beyond their control.

Who pays for the unemployment insurance?

The insurance scheme is funded by the employee, not the employer.

Who needs to get UAE unemployment insurance?

All federal government and private sector employees in the UAE are required to subscribe. Freelance workers may also opt into the scheme.

How can I subscribe to the unemployment insurance?

Employees can subscribe through the Insurance Pool's website (iloe.ae), its mobile app, bank ATMs, kiosks, business service centers, money exchange companies, du and Etisalat outlets, SMS, or other channels announced by the Ministry of Human Resources and Emiratisation (MoHRE).

In case I lose my job, how much compensation can I get?

Compensation depends on the employee’s salary. Those earning a basic salary of Dh16,000 or less can receive up to Dh10,000 per month, while those earning more can receive up to Dh20,000 per month. The compensation is calculated at 60 percent of the basic salary for up to three months.

Who is excluded from getting UAE unemployment insurance?

Exemptions include investors, business owners, domestic helpers, employees with temporary contracts, juveniles under 18, and retirees with pensions who have taken up new employment.

How much does the UAE unemployment insurance cost?

The cost varies based on the employee's salary. Those earning Dh16,000 or less pay Dh5 per month, while those earning more pay Dh10 per month. Payments can be made monthly, quarterly, semi-annually, or annually and are subject to VAT.

What if I don’t pay the insurance premiums?

Failure to pay premiums for more than three months will result in the cancellation of the insurance certificate and a penalty of Dh200.

How do I claim unemployment insurance?

Claims can be submitted through the insurance pool's e-portal, mobile app, or call center within 30 days from the date of unemployment.

What happens if I don’t get unemployment insurance?

Employees without valid unemployment insurance will be fined Dh400. Failure to pay this fine within three months may lead to wage deductions, including end-of-service gratuity, and could affect eligibility for new work permits until fines are settled. ICA/Expat Media
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