Unemployment insurance for workers in UAE.

The Unemployment Insurance scheme is a form of insurance / social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of the end of the employment relationship. The worker receives compensation from the date of unemployment. The compensation is on a monthly basis at the rate of 60% of the contribution salary (basic salary) and must not exceed Dh20,000 monthly for a period of three months from the date of unemployment, which is the maximum period for compensation for each claim.

The scheme applies to all workers in the private and federal sector except:

• investors, business owners who own and manage their business themselves

• domestic workers

• employees on a temporary basis

• juveniles under the age of 18

• Retirees who receive pension and have joined a new employer.

Workers with a basic salary of Dh16,000 or less will need to pay a monthly insurance premium of Dh5, i.e. Dh60 annually. Those with a basic salary exceeding Dh16,000 will need to pay Dh10 per month, i.e. Dh120 annually. Workers may subscribe to the scheme via Involuntary Loss of Employment ILOE Insurance Pool website and its app and any other channel which MOHRE may announce.

The insured worker will lose his/her eligibility for compensation if any of the following situations occur:

• he/she was dismissed from work for disciplinary reasons under the UAE’s Labour Law in the private sector and the Human Resources Law in the federal government, in addition to any applicable legislations

• there has been fraud or deceit involved in his/her claim

• The establishment where he/she works is fictitious.

• The period of the insured’s contribution shall not be less than 12 consecutive months.