After the new Unemployment Insurance Scheme goes into effect on January 1, 2023, employees in the UAE will be entitled to claim financial compensation as a kind of social security if they have been fired from their job.
The Unemployment Insurance Scheme, which employees must enrol in to receive a salary for up to three months in the event they lose their job, will be made available to the federal government and private sector employees, the Ministry of Human Resources and Emiratization (MOHRE) announced on Wednesday, November 2.
How will your insurance coverage be determined, though? And how do you enrol in the programme? Here is everything you require to know.
Who is eligible to subscribe to the Unemployment Insurance Scheme?
In the government and private sectors of the UAE, both expatriates and Emiratis are covered under the Unemployment Insurance Scheme. You must have worked in your previous position for a minimum of 12 months in a row, counting from the day you signed up for the insurance plan, to be qualified to receive compensation under the insurance plan.
When are you entitled to receive compensation?
If you lost your employment for causes outside of your control, you are eligible for compensation under the programme.
When are you not entitled to receive compensation?
According to MOHRE, there will be no compensation for workers:
- dismissed for a disciplinary reason.
- who have resigned from their job.
- who have left the UAE
- who have joined a new job.
How is the insurance payout calculated?
The insurance coverage compensation, according to MOHRE, is computed monthly at a rate of 60% of the basic income and is paid for a maximum of three months following the date of unemployment.
The insurance programme is separated into two groups:
Category 1:
- Employees who are earning a basic salary of Dh16,000 or less.
- Insurance cost: Dh5 per month (or Dh60 annually)
- Monthly compensation: 60 per cent of your basic salary, up to Dh10,000
Category 2:
- Employees earning Dh16,000 and above
- Insurance cost: Dh10 (or Dh120 annually)
- Monthly compensation: 60 per cent of your basic salary, up to Dh20,000
According to MOHRE, commission-based staff are also eligible to join the programme.
The employee can make payments on a monthly, quarterly, half-yearly, or annual basis, and the insurance costs Dh5 or Dh10 per month, depending on the category. Value-added tax is applicable to the insurance policy’s purchase price (VAT).
How does an employee claim unemployment insurance?
The insured employee must file a claim for benefits within 30 days of the date of unemployment, according to the announcement from MOHRE.
Compensation shall be given out within two weeks after the claim date and will not exceed three months per claim.
How can one claim insurance?
Through the call centre at 800 382467 or the website of “The Insurance Pool,” dubins-wpp.ae, you can submit claims requests under the insurance programme.
The Dubai Insurance Company oversees “The Insurance Pool,” a collection of insurance providers with offices in the United Arab Emirates. It was created in 2018 to serve as the organisation legally responsible for offering insurance protection to employees covered under the UAE Workers Protection Programme.