The Ministry of Human Resources and Emiratisation (MoHRE) announced that its landmark social security program will take effect in the new year, with federal government and private sector employees required to subscribe to unemployment insurance from 1 January 2023.
This Policy was issued pursuant to Decree-Law No. 13 of 2022 regarding Unemployment Insurance and Cabinet Resolution No. 97 of 202 regarding the mechanisms and controls for implementing Unemployment Insurance and is subject to all terms and conditions contained therein.
Employees themselves, rather than their employers, will be required to pay contributions.
There are two categories:
employees earning a basic salary up to and including AED 16, 000 per month pay a premium of AED 5 per month, or AED 60 annually;
while employees earning a basic salary in excess of AED 16,000 per month pay a premium of AED 10 per month, or AED 120 annually.
Contributions can be paid on a monthly, quarterly, half-yearly, or yearly basis.
In the event of a change in the Worker’s Basic Wage/ Salary as documented in the work contract (increase), the Insured, upon his request, pays the increase in the Insurance Premium applicable to previous and the subsequent payments, provided that the Insurance Certificate Period remains unchanged
Failure by an employee to subscribe to the scheme within three months, or non-payment of premiums due for three months, will result in a fine of AED 400 or AED 200 respectively.
These fines may be deducted from the employee’s wages or end of service gratuity by the employer.
Making a claim
A claim must be made within 30 days of the employee’s termination via one of three available channels: an online portal, a smart application, or a call center. Compensation will be paid within two weeks of filing the claim.
The maximum benefit for any one Claim is three (3) mont
The Unemployment Insurance Law expressly does not apply to people in the following categories:
Investors who own the business for which they work;
Temporary workers (within the meaning of the Labor Law, i.e. contractors);