Amidst the several initiatives by Arab nations to bolster economic growth, UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has announced the availability of an Unemployment Insurance scheme effective 1 January 2023, in efforts to achieve a competitive knowledge economy by attracting and retaining the best international talent.
The Unemployment Insurance is a form of social security that provides locals and residents working in the federal and private sectors financial support if they lose their jobs as a result of termination by their employers, MOHRE said in a statement.
It aims to ensure a decent living for the unemployed and achieve a competitive knowledge economy by attracting and retaining the best international talent.
The scheme applies to all workers in the private and federal sectors except investors, business owners who own and manage their businesses themselves; domestic workers; temporary workers; juveniles under the age of 18 and retirees who receive a pension and have joined a new employer.
HOW CAN IT BE AVAILED
The subscription to unemployment insurance is available under two basic schemes.
The first is for workers with a basic salary of $4,356 (AED 16,000) or less. They will need to pay a monthly insurance premium of $16 annually. At most, the compensation for this category must be a monthly amount of $2722.
The second category is workers with a basic salary exceeding $4,356. They will need to pay $32 annually. The compensation for this category must be at most $5445 monthly.