The UAE has seen an overwhelmingly positive response to its new unemployment insurance program, which was launched on January 1st. In the first two days alone, over 60,000 employees nationwide signed up for coverage. This high level of participation demonstrates the importance of financial security for workers in the face of potential job loss.
The program was implemented through a federal decree, and is designed to provide support to workers in both the public and private sectors. It is notable that the program does not incur any additional costs for employers, making it a financially feasible option for workers to consider.
Participants had a choice of seven different channels through which to sign up for the program, with the website of the Dubai Insurance Company being the most popular choice, chosen by 86% of participants. Other options included self-service kiosks, smartphone applications of banks in the country, and telecom bill payments.
Of those who signed up, 90% chose to enroll in the program on an annual basis. The program is available to two categories of individuals, with subscription fees of AED5 per month (AED60 annually) for those earning AED16,000 or less, and AED10 per month (AED120 annually) for those earning more than AED16,000. If an insured employee does not resign or is fired for disciplinary reasons, they may be eligible to receive a sum calculated at 60% of their basic salary from the last six months before becoming unemployed, for a maximum of three months. This compensation will be paid within two weeks of the claim date, and individuals must be subscribed to the program for at least 12 consecutive months to be eligible.
It is worth noting that certain groups are exempt from the program, including investors, owners of establishments, domestic workers, temporary contract workers, and juveniles under 18. Despite these exemptions, the high level of participation in the program’s first two days suggests that it is meeting a significant need among the workforce. As such, the program is likely to be a valuable resource for workers looking to protect themselves against the financial impacts of job loss.
The number of subscribers in the Unemployment Insurance Scheme has reached 60,000 within two days.
The Scheme that entered into force on January 1st, 2023 is an implementation of the Federal-Decree No 13. of 2022 regarding Unemployment Insurance that aims to provide temporary pic.twitter.com/eE8a6oz2Nn— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 3, 2023
How can I apply?
The insured individual must submit the claim through the designated channels, which are the Dubai Insurance Company’s website https://www.iloe.ae, smart application of the insurance complex, and the call center of the insurance complex (600 599 555).
An individual has to be subscribed to the scheme for at least 12 consecutive months to be eligible for the benefit. The person forfeits his right to the claim if he leaves the country or accepts a new position.
The exempted categories for the scheme are investors or owners of establishments, domestic workers, temporary contract workers, juveniles (under 18 years), and retirees who receive a pension and joined a new job.
