The Unemployment Insurance Scheme

The Unemployment Insurance Scheme is a type of insurance or social security that offers Emiratis and residents who are employed in the private or public sectors with financial assistance in the event that they are fired by their employers and end up without a job. The worker will be required to pay a monthly insurance premium in exchange for the financial assistance.

What are the insurance plan’s objectives?

⦁ provide the insured with a temporary income during their unemployment
⦁ improve the competitiveness of Emiratis in the labor market
⦁ provide social protection to ensure that the unemployed continue to live in decent conditions
⦁ create a knowledge economy that is competitive by attracting and retaining the best international talent

To whom does the scheme apply?

All private and federal sector employees are covered by the plan, with the exception of:
⦁ investors and business owners who own and run their own businesses
⦁ domestic workers
⦁ temporary employees
⦁ juveniles under the age of 18
⦁ retirees who have joined a new employer and are receiving their pension.

How much does it cost?

1. Laborers with an essential compensation of AED 16,000 or less should pay a month-to-month insurance installment of AED 5, i.e. AED 60 per year. This group must receive no more than AED 10,000 per month in compensation.
2. Those with a basic salary of more than AED 16,000 must pay AED 10 per month, or AED 120 per year. The monthly compensation for this group cannot exceed AED 20,000.

The worker can choose to pay the premium every month, every three months, every half year, or every year. In addition to the aforementioned basic package, the insured worker may subscribe to additional benefits in collaboration with the insurance company. The insurance policy’s value is subject to VAT.

How do I subscribe to the scheme?

Workers can sign up for the plan through the Insurance Pool website and the Dubai Insurance Company app, as well as any other channel that MoHRE decides to announce.

The various subscription channels are:

⦁ Insurance Pool’s website and app
⦁ Bank ATMs and kiosk machines
⦁ Business service centers
⦁ Money exchange companies
⦁ du and Etisalat
⦁ SMS

Who offers the insurance policy?

Dubai Insurance Company is the representative of the insurance pool, which consists of nine national insurance companies:
⦁ Dubai Insurance Company
⦁ Abu Dhabi National Insurance Company
⦁ Al-Ain Ahlia Insurance Company
⦁ Emirates Insurance Company
⦁ National General Insurance Company
⦁ Orient Insurance
⦁ Abu Dhabi National Takaful Company
⦁ Oman Insurance Company
⦁ Orient UNB Takaful Company

Filing for a compensation claim

The worker must file a claim for compensation with the Orient UNB Takaful Company within 30 days of the date of his or her unemployment. After receiving the claim, the insurance company has two weeks to send the money to the insured’s account. The Federal Authority for Government Human Resources will, in conjunction with the Ministry of Finance, put the “Unemployment Insurance Scheme” into action for federal government employees.

Looking for assistance with the Unemployment Insurance Scheme? Connect with Plus UAE today!