UAE: Unemployment insurance scheme for public and private sector workers comes into force

UAE: Unemployment insurance scheme for public and private sector workers comes into force

Employees in the UAE’s government and private sector can opt in for an unemployment insurance scheme that came into force on Tuesday.

The move allows insured individuals to claim a specific cash amount for a limited period if they lose their employment, the country’s Ministry of Human Resources and Emiratization (MoHRE) announced on Thursday.

The compensation will be paid monthly, calculated at 60 percent of the employee’s subscription salary and subject to a maximum of $5,450 (AED 20,000) per month, for no more than three months from the date of unemployment.

The system is expected to provide stability and sustain an individual’s standard of living until another employment is found. The system functions like an insurance package where residents pay forward a certain sum every year to the unemployment fund.

“It also aims to enhance the competitiveness of the UAE nationals, boost the attractiveness of the UAE’s job market for the best international and national talents and contribute to building a competitive knowledge-based economy that is among the best globally,” MOHRE said, according to a report by the Emirates News Agency (WAM).

The changes come as part of the UAE’s wider vision to attract and retain talent in the country.

“Reports showed the preference of people