uae unemployment insurance scheme

UAE Unemployment Insurance Scheme

The Ministry of Human Resources and Emiratisation (MoHRE) announced that its landmark social security program will take effect in the new year, with federal government and private sector employees required to subscribe to unemployment insurance from 1 January 2023.The program was announced in May 2022 and the legislative framework set out in Federal Decree Law No. 13 of 2022, issued on 15 September (the Unemployment Insurance Law) and Cabinet Decision No. 97 of 2022 regarding the mechanisms and controls for the implementation of the Unemployment Insurance Scheme.

It provides for an insurance scheme whereby private sector and federal government employees, in return for a small monetary contribution, will be eligible for compensation payments in the event of unemployment. The MoHRE has signed an agreement with nine local insurance companies to operate and fund the scheme.Subscription to the unemployment insurance scheme will start on January 1, 2023, the Ministry of Human Resources and Emiratisation (MoHRE) has announced. The ministry has also called on UAE nationals and residents who work in the federal government and private sector to subscribe.

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uae unemployment insurance scheme

The insurance pool, which is represented by Dubai Insurance, is responsible for providing the insurance service and offers seven subscription channels, namely:The Ministry of Human Resources and Emiratisation (MoHRE) has announced that the subscription to the Unemployment Insurance Scheme will start on 1st January, 2023, calling on UAE nationals and residents who work in the federal government and private sector to subscribe.

The Insurance Pool, which is represented by Dubai Insurance, is responsible for providing the insurance service. The Pool offers seven subscription channels: the website www.iloe.ae, the smart app “iloe”, Kiosk machines, businessmen service centres, Al Ansari Exchange, bank ATMs and applications, as well as telecommunication bills.Stemmed from the Federal Decree-Law No. 13 of 2022, the Unemployment Insurance Scheme aims to create a low-cost job safety net that supports employees in their professional journey, providing them with career stability with no cost on employers.

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uae unemployment insurance scheme 2023

The Ministry of Human Resources and Emiratisation (MoHRE) has announced that subscription to the Unemployment Insurance Scheme will open on January 1, 2023, calling on UAE nationals and residents who work in the federal government and private sector to subscribe.The Insurance Pool, which is represented by Dubai Insurance, is responsible for providing the insurance service.

The pool offers seven subscription channels: the website www.iloe.ae, the smart app “iloe”, kiosk machines, certain service centres, Al Ansari Exchange, bank ATMs, and applications, as well as telecommunication bills.Based on the Federal Decree-Law No 13 of 2022, the Unemployment Insurance Scheme aims to create a low-cost job safety net that supports employees at no cost to employers.

Anyone who loses their job as a result of a termination of services (except for disciplinary reasons or resignation) is entitled to a maximum three-month cash compensation.

The subscription fees depend on the employee’s basic salary. The first category is those with a basic salary of Dhs16,000 or less; their subscription fee is Dhs5 per month (Dhs60 annually), whereas, the second category is those with a basic salary exceeding Dhs16,000; their subscription fee is Dhs10 per month (Dhs120 annually).

The first category is eligible for a monthly cash compensation reaching up to Dhs10,000, while the maximum monthly cash compensation for the second category is Dhs20,000.The insurance fees can be paid monthly, quarterly, once every six months, or annually. The insurance compensation is calculated at a rate of 60 percent of the employee’s basic salary in the last six months prior to his or her unemployment.

The compensation should be paid within two weeks from the date the claim is submitted. The insured can submit the claim through various claim channels, including the website,
smart app iloe, or the call centre of the insurance pool.The insured must be subscribed for at least 12 consecutive months to be eligible for cash compensation. However, they would lose the right to claim compensation should they leave the country or take up a new job.

unemployment insurance scheme uae New Updated

An employee subscribed to the unemployment insurance scheme must be present in the UAE to claim its benefits in the event of job loss, a top official has told Khaleej Times. Under the scheme, employees will receive a cash benefit (60 per cent of the basic salary) for up to three months if they lose their jobs.

“As long as you have lost your job after 12 months of subscription to the scheme and you are staying in the country, whether as a visitor or (as per terms of the) employment contract, you will be entitled to … compensation paid on a monthly basis,” Abdellatif Abuqurah, CEO, Dubai Insurance Company, said in an exclusive interview.

The main goal of infrastructure investment and labour laws in the UAE is to assist the citizens of the nation and uphold employees’ rights.Starting from 1 January 2023, purchasing an insurance scheme against job loss will be a mandatory requirement. The unemployment insurance scheme is UAE’s most recent step toward ensuring the financial stability and well-being of individuals employed in the nation. Here’s what we currently know about this scheme.

How much will the insurance cost?

The insurance scheme is divided into two categories.

The first one applies to those earning less than Dh16,000 per month. The monthly premium for an insured employee in this category is Dh5 (or Dh60 annually).

The second one applies to those earning more than Dh16,000 per month. In this case, the insurance premium is Dh10 per month (or Dh120 annually). Employees can receive payment monthly, quarterly, semi-annually, or annually. The insurance policy’s value is subject to value-added tax (VAT).

In addition, the monthly compensation will not be more than Dh10,000 for the first category and Dh20,000 for the second. The insurance coverage compensation is calculated monthly at a rate of 60% of the base salary.

uae unemployment insurance scheme Compensation

Anyone who loses their job as a result of termination of services (except for disciplinary reasons or resignation) is entitled to a maximum three-month cash compensation.

The subscription fees depend on the employee’s basic salary. The first category is those with a basic salary of AED16,000 or less; their subscription fee is AED5 per month (AED60 annually), whereas, the second category is those with a basic salary exceeding AED16,000; their subscription fee is AED10 per month (AED120 annually).

The first category is eligible for a monthly cash compensation reaching up to AED10,000, while the maximum monthly cash compensation for the second category is AED20,000.

The insurance fees can be paid monthly, quarterly, once every six months, or annually. The insurance compensation is calculated at a rate of 60 percent of the employee’s basic salary in the last six months prior to his or her unemployment.

The compensation should be paid within two weeks from the date the claim is submitted. The insured can submit the claim through various claim channels, including the website
https://www.iloe.ae,

What is unemployment insurance in UAE?

In the event that a worker becomes unemployed, they are eligible for compensation payments equaling 60% of their basic salary (subject to a cap of AED10,000 per month for employees earning up to AED16,000 per month, and a cap of AED20,000 per month for employees earning more than AED16,000 per month), for up to three

How to subscribe for unemployment insurance in UAE?

Workers may subscribe to the scheme via the Insurance Pool website and its app (Dubai Insurance Company) and any other channel which MoHRE may announce. Federal government and private sector employees must subscribe to the scheme from 1 January 2023.

What is unemployment insurance?

The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption and parental leave, or illness. It also provides relief to the dependants of a deceased contributor.

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