UAE unemployment insurance: Deadline, fines announced

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Employees have a grace period of six months - until June 30 - to subscribe to the unemployment insurance scheme, which came into effect at the start of the year.

It's mandatory for federal government and private sector workers to enrol but those working in the free zone are currently exempted.

Eligible employees who fail to register could also be fined if they fail to meet the deadline.

Shiraz Sethi, Regional Head of Employment at the law firm Dentons Middle East, shared the details with The Agenda on Dubai Eye 103.8.

The scheme provides a security net for employees who lose their jobs due to reasons other than disciplinary action or resignation.

They will be compensated with a monthly cash benefit of up to 60 per cent of their average basic salary but capped at AED 20,000.

The unemployment cover will be for up to three consecutive months.

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 payment can be made by the employee monthly, quarterly, half-yearly, or on an annual basis.

Exempted categories include investors (owners of companies they work at), domestic helpers, temporary-contract workers, juveniles under the age of 18, retirees who are entitled to a pension and have joined a new job, and employees working in free zones.

The Insurance pool, which is represented by Dubai Insurance, is responsible for providing the service.

Employees can subscribe via the insurance pool’s website and its smart app, as well as bank ATMs, kiosk machines, business service centres, money exchange companies, du and Etisalat or by SMS.

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