All government plans have prioritized the well-being of UAE citizens and residents. Whether it’s infrastructure development or labor regulation, the major goal in the UAE is to benefit the people and defend employees’ rights. Unemployment insurance in the UAE is the newest move aimed at maintaining financial stability for individuals employed in the country. This is what we know about the plan thus far.
Unemployment Insurance in the UAE for Emiratis and Residents
This social support initiative, introduced by Minister of Human Resources and Emiratisation, H.E. Dr. Abdulrahman Al Awar, will provide a basic income to people who lose their jobs. Starting in 2023, it will be a required plan for both private and public organizations.
Employees who lose their jobs in the UAE can receive up to 60% of their salaries under the UAE unemployment insurance plan, with a monthly cap of AED 20,000. When a person finds another job, the payment will stop as well. The payouts, however, will be for a limited time and will be announced later.
As previously mentioned, money for unemployment insurance in the UAE would come from an insurance pool. Employers will offer tiers of benefits, with amounts ranging from AED 40 to AED 100, which employees will pay. The insurance company programme is designed to allow flexibility while not overburdening anyone in their efforts to safeguard their future.
However, it is unclear if the firm would contribute or whether employees would pay through their income. These packages will be offered by existing insurance companies in the country, and MOHRE will monitor the entire process.