More than 60,000 sign up for unemployment insurance scheme

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More than 60,000 employees have signed up for the UAE's unemployment insurance scheme within the first two days of its launch.

About 86 per cent of them subscribed via the official website with 90 per cent opting to subscribe to the scheme annually.

The programme, which came into effect on January 1, aims to provide financial security to workers in the public and private sectors if they lose their jobs due to reasons other than disciplinary action or resignation.

The insurance cost for employees earning a basic salary of up to AED 16,000 (Category A) has been set at AED 5 a month, while those who earn more than AED 16,000 (Category B) will pay AED 10 a month.

The premium can be paid monthly, quarterly, half-yearly, or on an annual basis.

Compensation will be paid for a maximum of three months from the date of the employee’s job loss and will be calculated at 60 per cent of the basic salary drawn during the last six months before losing the job.

An individual has to be subscribed to the scheme for at least 12 consecutive months to be eligible for the pay out. The employee forfeits his/ her right to the claim if he/she leaves the country or accepts a new position.

The maximum monthly compensation amount for employees in Category A is AED 10,000, and for those in Category B it's AED 20,000.

The amount will be paid within two weeks following the claim date and the insured individual must submit the claim through the designated channels, which are the official website, smart application or the call centre 600 599 555.

Employees working in the UAE's free zones are currently exempt from subscribing.

The other exempted categories are investors or owners of establishments, domestic workers, temporary contract workers, juveniles (under 18 years), and retirees who receive a pension and have joined a new job.

Workers can subscribe to the programme through the insurance pool’s website or smart application, banks, self-service kiosks, Al Ansari Exchange, business service centres, and telecom service providers.

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