Unemployment Insurance: The AED400 Fine For Late Registration Is Now In Effect
The Ministry of Human Resources and Emiratisation had encouraged employees to register before October 1 to evade the penalty
We call on all eligible citizens and residents working in the private sector and federal government to subscribe to the Unemployment Insurance Scheme before 1st October to avoid a AED400 fine.
Now, employers have the option to register their employees in the Scheme, however, we…
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) September 19, 2023
To recap, the unemployment insurance scheme offers financial assistance to Emiratis and residents in the federal and private sectors who lose their jobs due to employer termination.
The support will be given in exchange of a monthly insurance premium paid by the worker during his/her employment.
The grace period of this scheme has been changed a couple of times…
The unemployment insurance scheme was announced on May 2022 by MoHRE. The scheme’s implementation was initially meant to start on January 1, got postponed to June 30, then it was further delayed until October 1st.
The scheme applies to all workers in the private and federal sector except:
- Investors, business owners who own and manage their business themselves
- Domestic workers
- Employees on a temporary basis
- Juveniles under the age of 18
- Retirees who receive pension and have joined a new employer
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The different options of subscriptions:
- Employees earning a basic salary of AED 16,000 or less are required to pay a monthly insurance premium of AED 5 (AED 60 annually), with a maximum compensation limit of AED 10,000 per month.
- Those earning more than AED 16,000 as a basic salary must pay AED 10 per month (AED 120 annually), and their compensation limit is capped at AED 20,000 monthly.
Workers can opt to pay their premiums monthly, quarterly, semi-annually, or annually. Additionally, insured workers have the option to subscribe to extra benefits, in coordination with the insurance company, beyond the basic package mentioned above.
Therefore, subscribers can also get FINED…
For instance, late insurance premiums beyond three months lead to a AED 200 fine and a certificate cancellation. The fines can get deducted from Wages Protection System, end of service, or other MOHRE approved methods.
More than 5.7 million employees have subscribed for this scheme
According to the latest Ministry statistics, around 5,730,000 employees have registered for the Unemployment Insurance System since its launch on January 1st, 2023, up until September 25, 2023.
The latest Ministry statistics reveal that approximately 5,730,000 employees have enrolled in the Unemployment Insurance System since its implementation on January 1st until September 25, 2023.
A penalty of AED 400 will be imposed on October 1st for individuals within the system… pic.twitter.com/GL5K9tpDzw
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) September 27, 2023