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Unemployment Scheme exceeds one million subscribers

April 6, 2023

The UAE Ministry of Human Resources and Emiratisation (MoHRE) said that the Unemployment Insurance Scheme has exceeded one million subscribers since its launch in January 2023.

The UAE Ministry of Human Resources and Emiratisation (MoHRE) said that the Unemployment Insurance Scheme has exceeded one million subscribers since its launch in January 2023 which aims to boost the labour market’s competitiveness by adopting innovative mechanisms without additional costs on employers..

The scheme covers employees in the federal government sector and the private sector, providing a low-cost job security net that supports the career path and living stability of employees in the UAE. 

“The Regulation of Labour Relations law and its executive regulations, after more than a year of implementation, improved the UAE’s labour market’s flexibility, competitiveness, and productivity, enhanced the country’s ease of doing business, and attracted national and international talents,” said Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.

The insurance is divided into two categories: the first covers those with a basic salary of AED 16,000 and less, to pay AED5 per month (AED60 annually), and monthly compensation is capped at AED10,000 per month. The second category includes those with a basic salary exceeding AED 16,000, in which they pay AED10 per month (AED120 annually) with a monthly compensation of up to AED20,000.

The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. In that case, they can submit a claim within 30 days of job loss which  will be  processed within two weeks of submission.

The ministry said that the compensation is calculated at the rate of 60 percent of the average basic salary in the last six months before unemployment, and paid for a maximum of three months for each claim from the date of unemployment.

Investors – owners of facilities in which they work, domestic helpers, employees with a temporary employment contract, juveniles under 18 years of age, and retirees who receive a retirement pension and have joined a new job are exempted  from applying. 

According  to the minister, the year 2022 has witnessed an 11% growth in the total number of private sector establishments in the UAE, compared to 2021. He added that this increase was accompanied by a 38 % growth in the total number of work permits issued by the Ministry .

 “Most notably, women’s participation in the private sector increased by 20 percent in 2022. This increase is testament to the UAE’s leadership’s support for women and the efficiency of labour market legislation and national policies to achieve a greater inclusion and diversity in the workplace,” added the minister. 

“These growths in the labour market are complemented by the unprecedented results and achievements in the Emiratisation levels during 2022, under the directives of H.H. Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Minister of the Presidential Court, and Chairman of the Board of the Emirati Talent Competitiveness Council (NAFIS),” he added.

The minister said that this is “particularly significant in terms of the increase” in the number of Emiratis working in the private sector in 2022 by 70% compared to 2021.

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