UAE Unemployment Insurance Scheme Guide 2025

United Arab Emirates launched their leading unemployment insurance plan, available now to employees located in the UAE. This program allows UAE citizens who are between jobs to have some stability and flexibility.Federal Decree Law No. Since 1 January 20,23, the Unemployment insurance scheme has been in place.

All employees from the private and federal sectors who work in mainland UAE have been covered by the Unemployment Insurance Scheme. In May 2023, Unemployment Insurance will also be available to employees in a Free Zone (including Dubai International Financial Centre or Abu Dhabi Global Market). 

This scheme offers financial support for employees who have lost their jobs because their employer terminated their employment contract. In the scheme, employees who lose their jobs for reasons other than disciplinary will receive a three-month cash benefit. 

UAE Unemployment Insurance Scheme

Unemployment Insurance Scheme is a social security and insurance program that gives Emiratis who are employed in the private and federal sectors financial support when they lose their jobs due to their employers terminating them. It is designed to guarantee a decent lifestyle for the unemployed while achieving a competitive knowledge-based economic system by attracting top international talent.

Unemployment Insurance Program, a program of social security and insurance that was established by the UAE Emirates in order to help unemployed individuals financially, has been created. The worker gets compensation for making a monthly premium payment.

The primary objective of the program is to ensure that unemployed individuals maintain a reasonable standard of life while promoting the competitiveness of the knowledge economy. With some important limitations, this scheme covers workers in both the public and private sectors. This includes all employees of the federal government and the private sector, including investors and managers of their companies.

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What is the ‘Unemployment Insurance scheme’?

Unemployment Insurance is a social security scheme that provides Emiratis who are employed in the federal or private sector financial assistance should they lose their employment due to termination. The financial aid will be provided in exchange for monthly insurance premiums that the worker pays while he is employed.

Scope

The scheme is open to all employees of the private and federal sectors, except for:

• Investors and business owners who run their own businesses
• Employers of domestic workers
• Employees who are on a short-term basis
• Juveniles under 18
• Pensioners that have moved to a new job and are receiving a pension.

Cost of subscription

The subscription fees are determined by the employees’ base salaries. Here are the insurance rates (other benefits are available on request to employees) for the basic insurance plan:

• Employees earning AED 16,000 and below must pay AED60 annually as insurance or AED5 per month.
• AED 10 will be charged per month for salaries above AED 16.000, which is AED 120 a year.
• The insured employee is able to choose whether they want to pay for the premium monthly, every three months, every six months, or annually.

Who is required to register?

Employees in the private and federal sectors in the mainland UAE as well as all free zones.

Who does not need to register?

The scheme does not apply to: Investors (owners of establishments where they work), domestic employees, contractors/temporary employees, minors under 18 years of age, and retirees that receive a pension but have found employment afterward.

When should employees register for work?

Employees in mainland China who are employed on or after 1 January 2023 must sign up for the scheme before 30 June 2023. Please note, however, that employees hired after 1 January 2020 have four months from the date their employment contract began to sign up for the scheme. The exact period of time that employees in free zones will have to sign up for the scheme is still unknown.

Subscriptions

It is the employee’s responsibility to register with the scheme and pay the required contributions.

Non-registration of vehicles is punishable

The Ministry of Human Resources and Emiratisation will fine you up to AED400 for non-registration and AED200 for each three-month period that a premium was not paid. The deductions can be made through the WPS, an end-of service gratuity or another alternative method announced by MOHRE. It is still unclear how deductions will be made from the employees in free zones, as not all of them are covered by the WPS. The employer will not be allowed to renew the work permit of an employee who has outstanding fines.

Subscription methods

There are several ways that employees can sign up for the plan. Most employees subscribe through the Insurance Pool’s website. Employees must have their Emirates ID Number and mobile phone number (email can be optional).

MOHRE has announced that payments can also be made through ATMs of banks, Kiosks and business service centres.

How often is the subscription fee due?

Payments can be made monthly, quarterly (once every six-months), or annually.

Claiming Insurance Benefits

For insurance benefits to be paid, applicants must satisfy the requirements set out in the Unemployment Compensation Law. These include:

• Insurance premiums have to be paid according to the prescribed frequency over a 12-month period.
• If you are not resigning, it is important to prove your unemployment.
• The dismissal of workers due to disciplinary actions does not qualify for the benefits.
• The candidate has thirty days after the date on which they lost their job to make a claim.
• The worker should be a resident of the country and have no current absconding complaints.
• The claim made should not be dishonest.

Filling Out A Compensation Claim

The candidate must file the claim within 30 days of the date of unemployment. Insurance companies are given two weeks after receiving the claim to credit an insured’s account. Insureds are compensated from the day they lose their job for a period of three months.

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Eligibility of Scheme

For the employee to be entitled to benefits, he or she must have paid a monthly premium for a period of at least 12 consecutive months. This will ensure that those who receive assistance when they are unemployed have paid into the scheme.

Application Form for Unemployment Insurance in UAE

Employes in UAE can purchase unemployment insurance through contacting a company to pay for the coverage.

Dubai Insurance Company represents nine firms named below, which form a pool of insurance.

• 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

Employees have a variety of options to enroll in an insurance program.

• The intelligent application of the insurance pool and its website (www.iloe.ae).
• ATMs, kiosks and banks that operate them
• Centres for service
• Money exchange companies
• Du and Etisalat

The Scheme Goals

Unemployment insurance scheme aims to support a competitive, knowledge-based economy by retaining top international talent and increasing Emiratis’ competition on the labor markets.

FAQs