Today it is announced by the UAE’s MoHRE (Ministry of Human Resource and Emiratisation) that to launch the framework of new unemployment insurance scheme, they have made an agreement with nine local insurance companies in UAE.
In case of the employee lose their job due to unforeseen circumstance, during his or her unemployment tenure this new scheme will provide protection. For each claim the UAE’s Government will be providing them with a cash compensation for limited time not exceeding 3 months.
From 1st Jan 2023, employees of the private sector and UAE’s federal government can be subscribe to this insurance scheme. The owners of the Organizations, Investors, domestic workers, temporary employment contract employees, Children and retirees who get the pension are not covered in this scheme.
As per the unemployment insurance scheme there are two sections. First Category to the employees whose basic salary of 16K AED or less. In this category the insurance cost is 5 AED per month i.e. 60 AED per year. The second section covers the employees whose basic salary is more than 16K AED. The cost of this insurance is 10 AED per month or 120 AED per year. There are monthly, Quarterly, Bi-yearly,annual basis this insurance payment can made by the employee, which is convenient for them. The value added tax ( VAT ) is plus to above mention amount.
*** Even the employees who are working on Commission basis can also avail this scheme
Under this scheme Monthly compensation
This scheme enables first category to get the month compensation up to 10,000 AED and second category gets monthly compensation upto 20,000 AED. However, the insurance coverage Compensation is calculated as 60% of the basic salary on monthly basis and upto three months will be paid to the insured from the date of Unemployment.
These claims can be obtained via three modes i.e. Insurance pool e-portal, Insurance pools customer support centre and smart application of the insurance pool. Please note that this claim should be done within 30 days from the date of unmployment.
As we mentioned above each claim is capped with maximum of 3 months and within two weeks from the date of claim, insured will get paid the claim compensation. There are few exception to this scheme such as if the employee resigned from the organization, Dismissed from the organization for disciplinary reasons,insured worked and subscribed less than 12 months and Insured left the country or Joined a new workplace.