Since the UAE government made unemployment insurance mandatory for both government and private employees, employees who are terminated now feel more secure. The scheme provides financial support until they find a new job for up to three months.
Let’s explore how the scheme works and how to claim UAE Unemployment insurance amount in case you lose your job.
UAE Unemployment Insurance Benefits
If you experience a job loss due to termination by your employer, you will be provided with monthly compensation determined by your basic monthly salary.
If your monthly earnings are below AED 16k, you will receive monthly insurance payments of up to AED 10k. If your monthly earnings exceed AED 16k, you will receive up to AED 20k in insurance payments.
You will continue receiving the insurance amount,
- until three months after the job loss or
- until you start your new job,
whichever is earlier.
However, you may be discontinued from receiving unemployment insurance benefits if you don’t meet the eligibility conditions.
Unemployment Insurance Eligibility Criteria in UAE
You must pay a minimal monthly premium depending on your salary bracket to be eligible to claim insurance. The scheme is open to all employees in both the federal and private sectors.
To qualify for an insurance claim in case of job loss, you must have paid the insurance premium for a minimum of 12 consecutive months.
Who is Not Eligible for the Unemployment Insurance Scheme?
- Temporary employees
- Investors who manage the business
- Individuals who receive a pension and join a new company
- Domestic workers
- Juveniles below 18 years of age
UAE Unemployment Insurance Application Process
You can apply for the scheme through one of the methods mentioned below.
- Official website (Insurance Pool) & smart applications
- Business Service Centres
- Du & Etisalat Outlets
- Bank ATMs and Kiosks
- Money Exchanges
After applying for the scheme, you must pay the monthly premium. You have the option to choose between paying annually or quarterly.
Cost of Unemployment Insurance Scheme in the UAE
This program aims to provide financial assurance to workers in case of unemployment, which is why the premium cost is minimal.
|Employee Categories||Insurance Premium Amount|
|Monthly salary less than AED 16,000||AED 5 per month (AED 60 annually)|
|Monthly salary of more than AED 16,000||AED 10 per month (AED 120 annually)|
How to Claim the Unemployment Insurance Amount?
In case of a termination of your job by your employer, you must submit the claim within 30 days to one of these approved channels:
- Official website
- Smart application
- Call center: 60 059 0000
Your insurance amount will be transferred within two weeks if the application meets the terms and conditions.
In conclusion, the UAE’s unemployment insurance scheme stands as a pillar of social security, offering reassurance to working residents in times of job loss. This policy provides income to eligible unemployed citizens and plays a pivotal role in attracting and retaining international talent, thereby contributing to the realization of a competitive knowledge economy.