UAE Unemployment Insurance Scheme Registers 5.7M Employees, Fines Begin October 1

UAE Unemployment Insurance Scheme Registers 5.7M Employees, Fines Begin October 1

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has revealed that approximately 5.73 million employees have subscribed to the Unemployment Insurance Scheme.

Mandatory unemployment insurance was introduced on January 1, 2023.

Up until September 25, more than 5.6 million people have subscribed in the private sector and more than 87,000 in the federal government sector.

The ministry made the announcement as the deadline for subscribing in the system approaches.

Starting from October 1, an AED400 penalty will be applied to those eligible for the system who have not subscribed.

This includes citizens and residents working in the private and federal government sector, excluding investors (business owners who own and manage their businesses themselves), domestic workers, temporary employees, minors under the age of 18, and retirees who receive pensions and have joined a new employer.

The MoHRE urged those eligible for the system to register immediately in order to avoid fines and benefit from the advantages it offers.

The system aims to provide a social safety net for citizens and residents, ensuring a decent life for them and their families until alternative employment opportunities arise.

It also aims to attract and retain top global talent to the UAE labour market.

The responsibility for participating in the system falls on