UAE to introduce unemployment pay scheme for residents
Under the scheme, people who lose their jobs will be eligible for up to Dhs20,000 per month to help with living costs…
From next year, UAE residents who lose their jobs will be eligible for cash payments to support them, under a new social support scheme announced this week.
The scheme will be rolled out in January 2023, and will be mandatory for all those that live and work in the UAE. When it was initially announced, the unemployment insurance was understood to apply only to Emiratis. However on Thursday May 12, Abdulrahman Al Awar, Minister of the Human Resources and Emiratisation, clarified that the unemployment insurance system will apply to all nationalities that work in the UAE.
According to The National, residents will be required to pay between Dhs40 and Dhs100 per year into an insurance company scheme, with the rate depending on which insurance package an employee chooses. It will be possible to volunteer to pay more into the scheme.
All insurance packages will be provided by existing insurance companies in the country.
In return, if a resident loses their job, they’ll still get roughly 60 per cent of their basic salary each month, up to Dhs20,000, for a limited period. This will then help them with living costs while they search for another job. Khaleej Times reports that the cash support will be provided to those that lose their jobs under ‘unforeseen circumstances.’