UAE unemployment insurance scheme: Subscriptions now open

UAE unemployment insurance scheme: Subscriptions now open

It is now possible to subscribe for the unemployment insurance scheme. Starting from early this morning, on January 1, 2023, subscriptions have officially opened on the Involuntary Loss of Employment website.

The mandatory scheme, which was recently announced by the Ministry of Human Resources and Emiratisation (MoHRE), provides a job safety net that supports employees while providing them with career stability at no cost on employers. It stemmed from the Federal Decree-Law No. 13 of 2022.

Under the scheme, all UAE nationals and residents working in both the private and federal sector are entitled to 3 months cash compensation if they lose their job as a result of termination – except if it was due to disciplinary actions or resignations.

For individuals earning a basic salary of Dh16,000 or less, the subscription fee is Dh5 per month while for individuals whose basic salary exceeds Dh16,000 the subscription fee is Dh10 per month. Subscription fees can be paid either monthly, quarterly, once every six months or annually.

To be eligible for the compensation, which is 60 per cent of the basic salary earned during the last six months prior to termination, individuals have to be subscribed for at least 12 consecutive months. If the individual