What is UAE Unemployment Insurance? How To Apply?
The UAE’s unemployment insurance scheme is a social security program that provides financial support to the unemployed. It aims to help the country’s residents and federal employees who lose their jobs due to termination. The program, also known as the Involuntary
Unemployment Scheme, provides stability to the workforce and attracts and retains the best talent. The scheme is mandatory for all employees in the UAE, except for employees employed by the local government. If an employee loses their job involuntarily, they can apply for unemployment benefits through the Ministry of Human Resources and Emiratisation’s website. They will need to provide proof of their job loss and other relevant documents. The benefits will be paid for a maximum of 12 months, with the amount depending on the employee’s salary and length of service. This article will provide a detailed guide on how to apply for the UAE unemployment insurance scheme.
Eligibility:
All workers, including federal and private sector employees, are eligible to apply for the scheme. However, the insured must meet the following criteria:
- Being a UAE national or a resident with a valid residence permit.
- Minimum subscription period of 12 consecutive months
- No misconduct or fraud
- Not voluntarily leaving the job
- Not receiving any other income or compensation
- Not being an investor, domestic helper, part-time employee, worker under 18, or retiree who receives a pension and has taken up new work.
Procedure:
The following steps outline the application process:
- Before applying, employees should check whether they meet the eligibility criteria.
- Employees can choose from a list of insurance companies providing unemployment insurance in the UAE.
- Employees can purchase the policy by paying the monthly premium. The premium amount is calculated based on the employee’s salary. Employees will need to pay a premium of 15% of their monthly salary, with a minimum of AED 1,500. Employees will also contribute 1% of their employees’ monthly salary towards the scheme.
- The insured must wait for a minimum subscription period of 12 consecutive months before making an insurance claim.
- In case of job loss, the insured can make an insurance claim by submitting the required documents to the insurance company.
Documents Required:
To register for UAE Unemployment Insurance, you will need to provide the following documents:
- Emirates ID copy
- Visa copy
- Termination letter from the employer
- Salary certificate from the employer
- Bank statement for the last three months
What is the maximum amount of money that can be received through UAE unemployment insurance?
The maximum amount of money that can be received through UAE Unemployment Insurance is AED 10,000 per month. The compensation will be paid monthly, calculated at 60% of the insured’s basic salary and subject to a maximum of AED 10,000 per month. The unemployment compensation will depend on the monthly basic salary, but the value of the monthly cash sum will not exceed AED 10,000.
According to Article 6 of the Decree-Law, the maximum monthly unemployment benefit will depend on the employee’s monthly contributions, which are AED 10,000. Eligible employees will be offered protection up to a maximum of three months’ cash compensation, provided the relevant criteria are met.
The Benefits of UAE Unemployment Insurance:
The UAE unemployment insurance scheme provides several benefits to Emiratis and residents who have lost their jobs. Here are some of the benefits of the UAE unemployment insurance scheme:
- The scheme provides financial support to Emiratis and residents during their unemployment period. The eligible employees will be compensated with a monthly cash benefit up to 60% of their average basic salaries from the six months prior to the loss of employment.
- The scheme aims to reduce business risks by providing financial support to employees during their unemployment period.
- The scheme is available to all Emirati and foreign employees in the public and private sectors who have paid into it for a year and have been terminated.
- The insurance scheme is divided into two categories – the first covering those with a basic salary of AED 16,000 and less, and the second covering those with a basic salary above AED 16,000
Conclusion:
In times of unexpected job loss or career transitions, having a reliable support system can make all the difference. The UAE Unemployment Insurance program serves as a vital lifeline, offering financial support to individuals and families during challenging periods.
