The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of termination by their employers. It aims to ensure continued decent living for the unemployed and achieve a competitive knowledge economy by attracting and retaining best international talent.
What is the ‘Unemployment Insurance scheme’?
The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of termination by their employers.
The financial support will be given in exchange of a monthly insurance premium paid by the worker during his employment.
Scope of the scheme
The scheme applies to all workers in the private and federal sector except:
investors, business owners who own and manage their business themselves
employees on a temporary basis
juveniles under the age of 18
retirees who receive pension and have joined a new employer.
Cost of subscription
1-Workers with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, i.e. AED 60 annually. The compensation for this category must not exceed a monthly amount of AED 10,000.
2-Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually. The compensation for this category must not exceed AED 20,000 monthly.
The worker may choose to pay the premium on a monthly, quarterly, half-yearly or on an annual basis.
The insured worker may, in coordination with the insurance company, subscribe to additional benefits in addition to the above basic package.
The value of the insurance policy is subject to VAT.
Dubai Insurance Company is that representative of the insurance pool, which consists of 9 national insurance companies:
Dubai Insurance Company
Abu Dhabi National Insurance Company
Al Ain Ahlia Insurance Company
Emirates Insurance Company
National General Insurance Company
Oman Insurance Company
Orient UNB Takaful Company
Filing for a compensation claim
The worker must submit the claim within 30 days from the date of his/her unemployment. The insurance company has two weeks, from receiving the claim, to transfer the compensation to the insured's account.
The insurance providers must process the insurance claims in accordance with the terms and conditions of the insurance policy and the applicable legislations of the Central Bank of the UAE.
Compensation will be paid from the date he/she loses the job and will be paid for 3 months or until he/she finds a job, whichever is earlier.
MoHRE will report any breach to the terms and conditions of the insurance policy by the insurance companies.