Here are five important things to know about UAE unemployment insurance:
What is it and how does it work?
Employees subscribe to unemployment insurance by paying a fee. If they lose their job at least 12 months after subscribing, they can receive 60% of their basic salary for up to three months. Benefits are calculated based on the average basic salary earned in the six months preceding unemployment.
Who is eligible?
Emiratis and residents working in the private and government sectors are eligible. However, business owners, investors, household workers, temporary employees, those less than 18 years old, and retired individuals receiving pensions are not eligible.
What are the subscription fees?
Employees earning a basic salary of less than AED 16,000 pay AED 5 plus VAT monthly or AED 60 plus VAT yearly. Those earning more than AED 16,000 pay AED 10 plus VAT monthly or AED 120 plus VAT yearly. Payment can be made monthly, quarterly, half-yearly, or yearly
How to file a claim?
Employees have 30 days from the date of unemployment to submit their claim. The compensation is usually received within two weeks of filing the claim. The employee will receive compensation for three months or until they find a job, whichever comes first.
Eligibility for compensation?
Employees who have paid the subscription fee for at least 12 months and are legally present in the UAE are eligible for compensation. However, individuals who were fired for disciplinary reasons, resigned, were involved in fraudulent claims, or worked in a fictitious establishment are not eligible.
Note: Failing to subscribe to the scheme by the June 30, 2023 deadline will result in a AED 400 fine.