Major Unemployment Insurance Update Announced by the UAE

  • Publish date: Wednesday، 03 May 2023
Major Unemployment Insurance Update Announced by the UAE

A major update has been made to the UAE's mandatory unemployment insurance. Employees of free zones and semi-government entities can now enroll in the job loss scheme.

On the official portal, a recent pop-up announcement states, “Do you work in semi-government entities or companies registered in a UAE Freezone? You can subscribe now by clicking on subscribe here and proceeding to Non-Registered in MoHRE.”

On January 1, 2023, employees in the UAE were required to sign up for an unemployment insurance scheme. Employees of Freezones and semi-government organizations, however, were formerly exempted.

Employees who lose their jobs will receive up to three months of pay at 60% of their basic salary under the job loss plan. The monthly limit under the scheme is AED 20,000.

Authorities have said that people who do not apply for unemployment insurance schemes will be subject to fines starting on June 30. The fines for non-subscription are AED400 and the fine for missing an installment premium is AED200.

Unemployment insurance is offered by a select group of insurance organizations and ranges in price between AED5 and AED10 each month.

According to a report from last month, since the scheme's launch, more than a million UAE employees have registered for it.