Unemployment scheme: Will Indian expats in UAE get income support?

Dubai: The United Arab Emirates (UAE) has recently announced an unemployment scheme. Under the scheme, unemployed individuals will get income support for a limited period of time.

Since the announcement of the scheme, confusion is prevailing among Indian expats in UAE that whether the scheme is available for them too.

As per the announcement made by Minister for Human Resources and Emiratisation Abdulrahman Al Awar, the scheme is available both for Emiratis and expats. He said that the scheme will act as a safety net for everyone.

Who is eligible?

The unemployment insurance scheme which is going to start in 2023 will cover both Emiratis and expats working in the public and private sectors.

However, employees will have to contribute a nominal amount to the scheme annually. Upon losing the job, they will get 60 percent of the basic pay up to a maximum amount of Dh 20 thousand.

Individuals who are not eligible under the scheme are

1. Investors
2. Domestic workers
3. Employees on temporary contracts
4. Retired persons with pensions
5. Persons aged less than 18 years.

Indian expats in UAE

As per an estimate, over 34 lakhs Indian expats are living in UAE. They constitute over 38 percent of the total UAE population.

Presently, a significant number of Indian expats are working in UAE’s construction, retail, financial services, healthcare, manufacturing and transport sectors.