Other BriefingsUAE Extends Unemployment Insurance Deadline Until October 1st 2023
All company employees must individually apply, not their employers.
The UAE Ministry of Human Resources and Emiratisation (MoHRE) has extended the date of registering with the UAE Unemployment Insurance Scheme, originally intended for July 1st and now pushed back until October 1, 2023. This extension allows more time for employees to complete their registration, according to the Ministry.
Employees Responsibility
Subscribing to the UAE Unemployment Insurance Scheme is the responsibility of the employee, not the employer, and the fine for failing to subscribe within the deadline is set at Dh400 (about US$110).
The Ministry revealed that over 4.6 million subscribers have registered in the scheme to date, stating that “The remarkable success that the Unemployment Insurance Scheme has achieved since it went into effect in January 2023 reflects the notable awareness among beneficiaries and members of the community as a whole about the advantages in terms of providing a social safety net, as well as enhancing quality of life for workers across the labour market.”
Unemployment Coverage & Exceptions
The scheme covers workers in the federal government and the private sector – citizens and residents – with the exception of investors (owners of the establishments where they work), domestic workers, temporary contract workers, juveniles under 18 years of age, and retirees who are earning a retirement pension and have started a new job.
3 months cash compensation
The scheme enables insured employees to obtain temporary cash compensation for a period of three months from the date of loss of employment, amounting to 60% of their average basic salary in the last six months preceding their termination for non-disciplinary reasons.
Employee Dues
The nominal subscription fee does not exceed Dh5 US$1.5) per month for workers earning basic monthly salaries of Dh16,000 or less — and Dh10 (US$3) per month for workers earning basic salaries more than Dh16,000. Employees should note that non-compliance penalties for not joining this scheme fees are significant (US$110) compared to signing up for the unemployment coverage.
Individuals facing difficulties registering for this scheme may contact Dezan Shira & Associates at dubai@dezshira.com for assistance.
Related Reading
- The UAE Mandatory Unemployment Insurance Scheme
- The UAE Launches A.I. Based Employment Contract Registrations
An Introduction to Doing Business in Dubai 2023
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