MoHRE announces full Unemployment Insurance Scheme of up to AED 20K; Check details here

The United Arab Emirates’ Ministry of Human Resources and Emiratisation (MoHRE) has revealed compensation details as part of its full Unemployment Insurance Scheme for eligible private sector employees.

The job loss insurance scheme was launched in 2023 to provide support to all private sector employees in the UAE who lose their jobs involuntarily. Over 6.5 million employees subscribed to the scheme within a few months of its launch.

Announcing the scheme, the Ministry said, “If you lose your job, the Unemployment Insurance Scheme provides you with cash compensation for up to 3 months or until you find a new job.”

It shared that, "Employees earning AED 16,000 or less will pay an insurance premium of AED 5 per month (AED 60 per year), with a maximum monthly compensation of AED 10,000 if they involuntarily lose their job.

Those earning above AED 16,000 fall into the second category, paying AED 10 per month (AED 120 per year), with compensation capped at AED 20,000 per month if they involuntarily lose their job.”

Underlining the eligibility criteria, the Ministry shared:

Additionally, the insured must have paid all premiums according to their selected schedule, or face a fine of AED 400.

They must submit proof of job loss or layoff, excluding voluntary resignation. The claim must be submitted within 30 days of the job loss, which must not be a result of strikes or non-peaceful protests. The insured must also reside in the UAE to continue receiving compensation.

The Ministry also noted five types of workers excluded from enrolling in the scheme: “All employees in the federal government sector and the private sector are required to participate in the system by purchasing an insurance policy that covers them in case their service ends according to the established eligibility criteria. The following categories of workers are excluded from the scheme:

The scheme, under Federal Law Decree No. 13 of 2022, notes some additional limitations - A compensation period of 3 months is available for each claim, provided that: