UAE’s Mandatory Unemployment Insurance Scheme Comes into Effect from Jan 2023
UAE’s Mandatory Unemployment Insurance Scheme Comes into Effect from Jan 2023
The UAE Government has passed a law that makes Unemployment insurance scheme mandatory for all Emiratis and foreign employees working in both private and public sectors in the UAE. Here are all the details you need to know about the scheme.
According to the scheme, every employee terminated from their respective jobs by their employers will be provided with sixty-percent of their basic salary for a period up to three months. Employees earning less than AED 16,000 per month gets a compensation up to AED 10,000 and those earning more than AED 16,000 per month gets up to AED 20,000.
Employees must be employed and subscribed to the said scheme for at least twelve months in order to claim the benefit. Employees working on a commission basis will also be qualified for the scheme. However, the scheme won’t be applicable if the employee was dismissed due to disciplinary reasons, resignation, starting a new job or leaving the country.
Premiums begin at AED 5 per month and is dependent on two categories of employees - employees with a monthly income less than AED 16,000 must contribute at least AED 5 per month or AED 60 annually to the scheme that they select and a minimum of AED 10 per month or AED 120 per annum must be contributed by employees earning more than AED 16,000.
An employee can subscribe to the insurance scheme through various portals including Insurance pool website, employee's bank, ATM machines throughout the UAE, exchange centers, banking centers, Du/Etisalat and directly with an insurance company.
Another important thing to note is that if an employee fails to register in an unemployment insurance scheme, a penalty of AED 400 will be imposed on them. After registration, if employees fail to pay their contributions for more than three months, an additional AED 200 will be imposed on them as penalty.
For more details on the scheme, contact the Al Nahda Centre.
#alnahdacentre #anc #governmentservices #amerservices #dhaservices #ded #dubaicourt #civildefensedubai #eidservice #dubai #dubaigovernmentservices #dha #dubaiservices #alnahda #emiratesid #dubaieconomicdepartment #uae #uaelaw #dubainews #uaelawupdate #uaelaws #unemploymentinsurancescheme #unemploymentinsurance
Recent Posts
Subscribe To Our Newsletter
Join our subscribers list to get the latest news, updates and special offers delivered directly in your inbox