Expats will get salary even if they lose jobs, UAE announces new insurance scheme for employees

ABU DHABI: The UAE has announced the Unemployment Insurance scheme, which guarantees up to three months of salary even if employees lose job. Officials informed that the scheme will start from January 3, 2023. Federal government employees and those in the private sector can join the scheme.

The scheme is implemented in two categories. The first covering those with a basic salary of AED16,000 and less. The insurance cost for the insured employee in this category is set at AED 5 per month, which is AED 60 annually. The second category includes those with a basic salary exceeding AED16,000, and the insurance cost is AED 10 per month, which is AED 120 annually. Premium can be paid annually, half-yearly, quarterly and monthly. Employees have to pay the premium on their own. Therefore, there will be no additional liability for the companies.

Employees can get up to 60 per cent of their salary if they lose job for no fault of their own. Those in the first category will get a maximum of AED 10,000 and those in the second category up to AED 20,000 in case of job loss. Application must be submitted within 30 days from the date of unemployment. Payment will be received within two weeks of application submission. Money can be received up to three months.