UAE Introduces unemployment insurance scheme for employees _

uae-unemployment-insurance-scheme

The unemployment insurance scheme is one of the latest initiatives from the UAE government and is a further step towards ensuring financial sustainability for those employed in the country.

All federal government and private sector employees must subscribe to this scheme from 1 January 2023. 

How will it work?

The insurance premiums & compensation is classified in  two categories. 

Category 1: 

for workers who earn a basic salary up to `16k AED

Contribution:  5 AED a month (60 AED annually)

In the event that an employee loses their job due to a non-disciplinary reason,  they can claim up to 10k AED for up to 3 consecutive months. The claim amount is calculated at a rate of 60% of the basic salary. 

Category 2: 

for workers who earn a basic salary of more than R16k AED 

Contribution:  10 AED a month (120 AED annually)

In the event that an employee loses their job due to a non-disciplinary reason, they can claim up to 20k AED for up to 3 consecutive months. The claim amount is calculated at a rate of 60% of the basic salary. 

Payments can be made monthly, quarterly, bi-annually or yearly.  Anyone who loses their job must make a claim within 30 days of job loss through the approved channels. This benefit does not apply if you resign, or are let go for other disciplinary reasons. 

Compensation will be handed out within two weeks of the claim and the maximum claim period is 3 consecutive months within a 12 month cycle.  

How to apply: 

You may sign up with any of the nine insurance providers listed below on the following channels: 

  • Insurance pool’s website (www.iloe.ae) and smart application
  • Bank ATMs and kiosk machines
  • Business service centers
  • Money exchange companies
  • du and Etisalat
  • SMS

Insurance Companies:

  • Dubai Insurance Company
  • Abu Dhabi National Insurance Company
  • Oman Insurance Company
  • Al Ain Ahlia Insurance Company
  • Emirates Insurance Company
  • Orient Insurance
  • Abu Dhabi National Takaful Company
  • National General Insurance Company
  • Orient UNB Takaful Company

SHARE THIS POST
Be updated with the latest accounting trends

Subscribe to our newsletter_

merry-christmas

CRESCO Legal wishes everyone a wonderful Merry Christmas.

May this Holiday Season sparkle, shine and may all your wishes and dreams come true, Merry Christmas. 🌲🌟