UAE’s unemployment insurance scheme comes into effect

UAE’s unemployment insurance scheme comes into effect

The UAE’s new unemployment insurance scheme for Emirati and foreign employees in the public and private sectors comes into effect on January 1, 2023.

The social security programme, called the Involuntary Loss of Employment insurance scheme, will pay Emiratis and residents a cash sum for three months if they lose their jobs. First announced in May, it aims to provide a decent life for workers in the UAE until they find another job, according to the programme’s website. The insurance pool, which is represented by Dubai Insurance, is responsible for providing the service.

The Ministry of Human Resources and Emiratisation has signed an agreement with nine local insurance companies to operate and fund the scheme. “Employees can subscribe to the insurance programme in a number of ways, including through the insurance pool’s website and its smart application, the employee’s bank, ATMs, money exchange companies, business service centres, kiosk machines, du and Etisalat or directly with an insurance company.”

Compensation will be paid for a maximum of three months from the date of an employee’s job loss and will be calculated at 60 per cent of their basic salary over the most recent six months before the loss of employment for a maximum payment