Big news for the people in UAE. Certainly, this news is all set to send smiles on the faces of the workers living in United Arab Emirates. UAE Unemployment Insurance Scheme has now been introduced by the government. The government announced new unemployment insurance scheme for all workers residing in UAE. This scheme is for all workers irrespective of their nationalities meaning that all nationalities working in UAE are fit for this scheme (conditions apply).
UAE Unemployment Insurance Scheme in Detail
From next year, the workers no matter working in public or private sector will be able to enjoy this unemployment insurance, according to the government official.
The decision was taken in a cabinet meeting held few days back chaired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai. The cabinet approved this scheme. Thus (from next year), the unemployed individuals in the country will be provided with income support for a limited period of time.
Purpose of the Unemployment Insurance Scheme
The purpose of the scheme is to strengthen the competitiveness of UAE’s job market, and to endow a social security umbrella to the workers in the country when they lose their jobs. They will be provided with the income support during the limited time while they search for a new job (after losing their last job).
The unemployed workers (from public or private sectors) will receive a cash support until they find another job. Investors, workers with temporary contracts, domestic workers, the people who are under 18 years of age and retired people (with a pension) who joined new job cannot participate in unemployment insurance scheme.
Small Amount of Contribution from Employees
From 2023, a small chunk of money will be contributed by the employees for UAE unemployment insurance scheme via insurance companies. On yearly basis, the payment will be made. As mentioned earlier, the contribution on employees’ parts will be a small amount and be based on a chosen or preferred insurance plan between the insurance company and the employees (workers).
According to UAE Government, the unemployment insurance fees could be between Dh40 to Dh100 per year. The government is certain that this new scheme will attract more workers and talents to UAE and at the same time will develop more trust in UAE workplace.
Who is Eligible for UAE Unemployment Insurance Scheme?
Both UAE expatriates and Emiratis alike are eligible for this scheme (provided that they lose their jobs). The affected persons (employees) will be able to receive various annual packages through insurance companies by the time they lose their jobs. Besides, the workers will also have the option to apply for high insurance packages. The employees (who lose jobs) will be able to receive 60% of their basic salaries with a maximum payment of Dh 20,000 over a specific period of time.
Who is Not Eligible for This Scheme?
Following persons are not entitled to avail this scheme.
- Domestic workers
- Investors
- Workers under 18 years of age
- Workers with temporary contracts
- Retirees receiving pensions who joined new job
This is undoubtedly a good step of UAE government to initiate UAE Unemployment Insurance Scheme.