UAE Introduces Worker Job Loss Insurance Mandatory: Enrollment Requirements and Costs

The United Arab Emirates (UAE) has made it mandatory for all Emiratis and residents working in the government and private sectors to join the Unemployment Insurance program to protect the financial stability of its labor force. This program provides financial help to those who lose their jobs as a result of employer termination.

The primary objective of this program is to make sure that jobless individuals keep a respectable quality of life while simultaneously building a competitive knowledge-based economy through the hiring and keeping of outstanding global talent.

Channels of Enrollment and Associated Insurance Companies:

Employees have the option to enroll in the insurance program through the ILOE Insurance Pool website, its app, or any additional channels that may be introduced by MoHRE in the future.

Which company will offer the insurance?

The Ministry of Human Resources and Emiratisation (MoHRE) revealed that the Dubai Insurance Company will be providing the new job loss insurance scheme. This company represents a group of nine other 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

Cost of Registration and Recompense:

The worker's pay category determines the monthly insurance cost.

• Employees with a basic salary of AED 16,000 or less are required to pay AED 5 monthly, totaling AED 60 annually, with a monthly cap of AED 10,000.
• Those whose base income is more than AED 16,000 must contribute 10 AED per month, or 120 AED on average per year, up to a maximum of AED 20,000 per month in compensation.

Additional Benefits:

Workers can choose monthly, quarterly, semi-annual, or annual premium payments and can coordinate with the insurance company for additional benefits.

The UAE Government has announced the enforcement of fines on workers who do not subscribe to or comply with payments for the Unemployment Insurance scheme, effective from October 1, 2023

The program shows the country's dedication to supporting its workers in the event of sudden job loss, encouraging financial readiness, and improving job market stability.