You Can Get Insurance For AED5 With The UAE’s Unemployment Insurance Scheme
On October 11, the Ministry of Human Resources & Emiratisation announced the Unemployment Insurance Scheme.
On November 2, the MoHRE announced a three-month compensation for each claim in the Unemployment Insurance Scheme
Moreover, this scheme ensures the sustainability of a decent life for Emiratis and resident employees during their unemployment period. It also reduces business risks.
The Unemployment Insurance Scheme protects private and federal government employees by offering them a three-month compensation for each claim in case their services are terminated. #UAE. pic.twitter.com/OI2qyQKtk8
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) November 2, 2022
Additionally, the MoHRE specified the subscription fees and compensation
For the 1st category:
- A basic salary of AED16,000 and less
- The insurance cost is AED5 per month
- Lastly, monthly compensation is AED10,000 max
While the 2nd category:
- A basic salary of more than AED16,000
- The insurance cost is AED10 per month
- Finally, monthly compensation is AED20,000 max
Officials calculate the insurance coverage compensation on a monthly basis at the rate of 60% of the basic salary.
Moreover, payments can be made monthly, quarterly, half yearly, or annually.
They also mentioned the subscription channels
These channels are as follows:
- Insurance Pool’s website and application
- Bank ATMs and Kiosk machines
- Business service centres
- Money Exchange companies
- du and Etisalat
- Any other channel that the Ministry of Human Resources and Emiratisation decides later with insurance companies
Lastly, here are all the important details on the Unemployment Insurance Scheme
- Employees are only eligible for compensation if they worked and subscribed to the scheme for at least 1 year.
- Moreover, employees are only eligible for compensation if they were not dismissed for a disciplinary reason of resignation.
- The insured employee must submit the claim through the approved claim channels within 30 days from the date of their unemployment.
- Lastly, the insured employee is not eligible for compensation if they left the country of joined a new job.