New UAE unemployment insurance scheme

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    New UAE unemployment insurance scheme – Is it applicable to both Emiratis and expats?

    The UAE has declared the decision to give an unemployment insurance scheme to all workers in the nation, according to the state-run.

    The move was part of a series of decisions declared throughout the cabinet meeting on Monday, chaired by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The UAE cabinet sanctioned the unemployment insurance scheme to give the unemployed person with income support for a limited time duration.

    The unemployment insurance scheme set the target to power the efficiency of the job market, give a social protection system for workers in case of job loss, and form a sustainable work atmosphere for all. As per Al Alwar, the unemployment insurance system would be obtainable to all employees in the public and private sectors in the UAE, while hunting for a job after being laid off.

    “The workers who lose their jobs would get cash assistance for tenure until the worker gets another job. The policy uses to all nationalities in private and public sectors,” stated the minister in a media conference maintained at the headquarters of the ministry in the Dubai emirate.

    Although, local workers, investors with interim contracts, people under the age of 18 years, and retired people with a pension who joined a new job would not be part of the unemployment insurance scheme.

    “The target is to make sure sustainability in the office space. The country set the target to allure skilled employees and make sure work sustainability,” Al Awar stated.

    As of 2023, workers would need to collect premiums for the unemployment insurance scheme through insurance corporations. “The payment would be on annual bases. This would be a small amount and depending on the selected insurance scheme between the employees and the insurance firm,” stated al Awar.

    He stated the unemployment insurance cost could range between Dh40 and Dh100 annually. The minister stated the insurance scheme would comprise paying 60% of the employees’ basic wages for some duration in the term of job loss, though he didn’t mention the tenure of such payouts.

    “This has been a safety worth for everybody who acts in the nation. We would have a final law and rules for the unemployment insurance scheme and would declare more information later this year,” added Al Awar.

    He stated the new and creative scheme would allure more employees and skills to the nation and would increase trust in the workplace in the country. “The new scheme would increase our economy as the employee who relinquishes job would be funded through this insurance without the hindrance tumbling on workers”.

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