UAE Unemployment Insurance Scheme

UAE Unemployment Insurance Scheme

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It has always been a priority of the UAE government to ensure the welfare of its nationals and residents. There is one primary objective in the UAE, whether it is the development of infrastructure or the protection of workers' rights in labour law. In addition, to further ensure its citizens' financial sustainability, the UAE unemployment insurance scheme was introduced last month. Our knowledge about the UAE's social security program is summarized below.


According to the announcement by H.E. Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, this program will provide financial support for people who lose their jobs. This scheme will be mandatory starting on 1st January 2023 for all federal government employees and employers in the private sector.


To establish the framework for the program, the Ministry of Human Resources and Emiratisation has signed nine agreements with local insurance companies. The insurance program will offer coverage for workers with a specific basic salaries.

Payments will be made monthly, quarterly, biannually, or annually depending on the employees' needs. Furthermore, the insurance policy value is subject to VAT.

As a result, if these employees meet the specified criteria, they will receive a monthly cash sum. A monthly compensation of 60 percent of the contribution salary is provided for a period of three months from the date of unemployment up to a maximum of Dhs.20,000. Additional benefits may be negotiated between the insured and the service provider.

In light of the insurance company program, individuals can secure their future with flexibility and without being overburdened.


All employees of the federal government and private sector in the UAE will be subject to the new law, except investors who own the establishments where they work, domestic helpers, part-time employees, juveniles under 18, and retired workers who have received a retirement pension but have changed jobs.

A worker is eligible for compensation if he or she has been insured for a minimum of 12 months, calculated from the date of enrollment in the insurance system. According to the provisions of the Law on Regulating Labour Relations and the Human Resources Law in the Federal Government, as well as any applicable legislation, the beneficiary shall not have been dismissed for disciplinary reasons.

In addition, no fraud or deception should be used in the compensation claim. An establishment that is not real shall be subject to the penalties stipulated in the Law on Regulating Labour Relations and any other legislation in force in the country if the establishment is found to be real.

A final condition of the compensation is that it shall be suspended once the employee takes up a new position in the compensation period.

10 Nov 2022

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