United Arab Emirates: Implementation of Unemployment Insurance Scheme

Effective immediately, the UAE’s Unemployment Insurance Scheme has been implemented for Emirati and foreign nationals employed in private and public sectors. The scheme provides financial support to workers in the private and public sector in case of employment termination. Individuals who register under this scheme can claim a monthly allowance for a three-month period (down from the originally published six-month period) from the date their employment ended, or up until the date they obtain employment, whichever is earlier. Employees will be eligible to receive 60% of their basic salary to assist with living costs, up to a maximum of AED 20,000 per month, however, this financial support will discontinue once the individual obtains new employment. Individuals must work and subscribe to the scheme for at least 12 months prior to the termination to be eligible for benefits. Insured employees must submit their claim for the scheme within 30 days of unemployment through three approved channels: Insurance pool e-portal, Insurance pool smart application and Insurance pool call center. Individuals currently employed within the private and public sectors eligible for the scheme must subscribe by January 1, 2023. Investors, temporary contract workers, domestic workers, individuals aged 18 or below and retired individuals receiving a pension are not eligible for the program. Employers in the public and private sector should notify their employees regarding this scheme and provide updates as further details are released; Fragomen will report on updates as they occur.