U.A.E Job Insurance update -fine starting from 1st Oct 2023

 Starting from October 1, 2023, employees in the U.A.E. who have not subscribed to the unemployment insurance scheme will be fined AED 400. This fine will be imposed by the Ministry of Human Resources and Emiratisation (MoHRE).

Important: The deadline to subscribe to the unemployment insurance scheme is September 30, 2023.

Employees can subscribe to the scheme through the website or mobile app of the Insurance Pool, a consortium of insurance companies that has been appointed by the MoHRE to administer the scheme. Employees can also subscribe to the scheme through bank ATMs and kiosk machines, business service centers, money exchange companies, du and Etisalat, and SMS.

The U.A.E. Job Insurance scheme came into effect on January 1, 2023, and is mandatory for all employees in the country, including private sector workers, federal government employees, and semi-government employees. 

Important dates:

September 30, 2023: Deadline for all employees to subscribe to the unemployment insurance scheme.

October 1, 2023: Fines will be imposed on employees who have not subscribed to the unemployment insurance scheme.

One year after subscribing to the scheme: Employees will be eligible to receive benefits if they lose their job.

Benefits of the unemployment insurance scheme:

• Employees who lose their job will be eligible to receive benefits of up to 60% of their basic salary for up to three months.
• The maximum benefit payout is AED 20,000 per month.
• Employees can also receive additional benefits, such as job search assistance and training.

How to subscribe to the unemployment insurance scheme:

Employees can subscribe to the unemployment insurance scheme through the website or mobile app of the Insurance Pool, a consortium of insurance companies that has been appointed by the Ministry of Human Resources and Emiratisation (MoHRE) to administer the scheme. Employees can also subscribe to the scheme through bank ATMs and kiosk machines, business service centers, money exchange companies, du and Etisalat, and SMS.

Eligibility for benefits:

To be eligible for benefits under the unemployment insurance scheme, employees must meet the following criteria:

1. They must have been subscribed to the scheme for at least one year.
2. They must have lost their job involuntarily.
3. They must be actively looking for a new job.

How to claim benefits:

Employees who lose their job and wish to claim benefits under the unemployment insurance scheme must register with the MoHRE. They can register online or at a MoHRE office. Once registered, they will need to submit the following documents:

• A copy of their Emirates ID.
• A copy of their labor contract.
• A copy of their termination letter.
• A copy of their bank statement.

The MoHRE will then review the employee's application and determine whether they are eligible for benefits. If the employee is eligible, they will receive their benefits within 30 days of submitting their application.

For more information on the U.A.E. Job Insurance scheme, please visit the website of the MoHRE.