As we move into 2023, the UAE government has made Unemployment Insurance Scheme (UIS) to better support those who lose their jobs. In this article, we will delve into the details of the UAE 2023 Unemployment Insurance Scheme.
The scheme applies to all workers in the private and federal sector except:
- investors, business owners who own and manage their business themselves
- domestic workers
- employees on a temporary basis
- juveniles under the age of 18
- retirees who receive pension and have joined a new employer.
Cost of subscription
- Workers with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, i.e. AED 60 annually. The compensation for this category must not exceed a monthly amount of AED 10,000.
- Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually. The compensation for this category must not exceed AED 20,000 monthly.
SUBSCRIPTION STARTS ON 01 January 2023.
The worker may choose to pay the premium on a monthly, quarterly, half-yearly or on an annual basis.
The insured worker may, in coordination with the insurance company, subscribe to additional benefits in addition to the above basic package.
The value of the insurance policy is subject to VAT.
Workers may subscribe to the scheme via the Insurance Pool website and its app (Dubai Insurance Company) and any other channel which MoHRE may announce.
Eligibility
To be eligible for the compensation, the worker must have been paying the monthly premium for at least 12 consecutive months.
Compensation will be paid from the date he/she loses the job and will be paid for 3 months or until he/she finds a job, whichever is earlier.
The eligible employees have grace period of 6 months (till 30 June 2023) to subscribe in the ILOE otherwise they will be subject to AED 400 fine, which can be paid from the same channels through which the employees purchase the policy. Also please note that if the insured/ worker was employed at a date later than 01 January 2023, he/she will have a grace period of 4 months to subscribe starting from the day he/she landed in the UAE or visa change status.
Suspension of the compensation
The insured worker will lose his/her eligibility for compensation if any of the following situations occur:
- he/she was dismissed from work for disciplinary reasons under the UAE’s Labour Law in the private sector (Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments) and the Human Resources Law in the federal government, in addition to any applicable legislations
- there has been fraud or deceit involved in his/her claim
- the establishment where he/she works is fictitious.
Without prejudice to the Eligibility Criteria and Exclusions stipulated hereinbelow, the Insurer shall compensate the Insured for the Claim by paying the benefit amount stated in the Policy Schedule.
If the terms and conditions of the Insurance Policy are met; the Insured becomes entitled to the Insurance Coverage stipulated in this Policy after twelve (12) months have passed from the date of the subscription provided that there is no interruption of subscription for more than three months. The Insurer’s obligation to provide Insurance Coverage ends if any of the following are met:
- Reaching the Maximum Aggregate Limit (during the Insurance Certificate/s Period over the entire work life of the Insured in the United Arab Emirates).
- In the event of the death of the Insured, the Insurance Coverage ends on the date of death.
Additional details can be found here.