Abu Dhabi: The United Arab Emirates (UAE) is set to introduce mandatory UAE unemployment insurance from Sunday, January 1, 2023.
The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) said the new plan, which was originally announced in May, provides compensation of up to three months for public and private sector employees who have lost their jobs.
The unemployment insurance scheme aims to create a low-cost job safety net that supports employees in their career journey, providing them with job stability at no cost to employers.
The MOHRE has now released a video guide on social media to explain the benefits and costs of unemployment insurance in the UAE.
In the video, MOHRE explains the two categories of insurance available to UAE citizens and expats, depending on the salary.
The first category is eligible for a monthly cash compensation reaching up to 10,000 Dirham while the maximum monthly cash compensation for the second category is 20,000 Dirham.
The insurance fees can be paid monthly, quarterly, once every six months, or annually. Insurance compensation is calculated at the rate of 60 per cent of the employee’s base salary for the last six months prior to unemployment.
The compensation must be paid within two weeks of the date of filing the claim. The insured can submit the claim through various claim channels, including the website iloe.ae, the iloe smart application, or the insurance pool call center 600599555.
The insured must subscribed for at least 12 consecutive months to be eligible for cash compensation. However, they will lose the right to claim compensation if they leave the country or take up a new job.
Investors – owners of enterprises in which they work, domestic workers, temporary contract workers, minors under 18 years of age, pensioners who receive a pension and take up a new job, are not entitled to participate in the insurance system.
