UAE Unemployment Insurance: Related Conditions and Rules

Earlier this week the UAE announced an ‘Unemployment Insurance’ which will be effective from 2023. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation on Thursday,  confirmed that employees who lose their jobs under unforeseen circumstances will receive cash support. The scheme will provide up to 60% of their basic salaries every month for a limited period until they find an alternative.

The scheme applies to employees of all nationalities in the public and private sectors.

But the following categories are exempted:  investors, domestic workers, employees working under temporary contracts, juveniles under the age of 18, and retirees with pensions or new job opportunities.

How to Apply and What Are the Conditions

The mandatory insurance package will cost workers an amount that ranges from Dh40 to Dh100 annually.

Employees will be able to apply for different annual packages through insurance companies to secure themselves against a potential job loss.

The redundancy payment will enable insured workers who suddenly lose their jobs to retrieve 60 per cent of their basic salaries with a maximum amount of Dh20,000 per month.

However, the support will be for a limited period of time that is not yet specified by the government.