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More than 250,000 employees in the UAE have been covered by unemployment insurance since it was launched two weeks ago.
The scheme, which came into effect this year, is designed to provide temporary monthly coverage to public and private sector employees in the event of an unexpected job loss.
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Some 86 percent of users choose to pay their premiums annually, while 6 percent choose to pay every six months, the Emirates News Agency reported on Friday.
About 4% of subscribers opted for quarterly payments, while the remaining 4% opted for monthly payments, the same report said.
Payment terms are up to three months. To be eligible for payment, employees must have been insured for at least 12 months.
Insurance costs fall into two categories:
Employees with a basic salary of less than $4,350 (Dh16,000) can contribute $1.30 (Dh5) per month for insurance. The monthly salary in this category will not exceed USD 2,720 (AED 10,000).
Employees with a basic salary above US$4,350 (AED16,000) can contribute US$2.72 (AED10) per month for insurance. The monthly salary in this category will not exceed USD 5,440 (AED 20,000).
Unemployment compensation can be claimed at 60% of basic wages.
Employers do not have to pay the cost of enrolling in unemployment insurance, but can choose to do so.
The UAE cabinet approved the scheme in May to provide unemployment benefits as part of a larger job guarantee scheme launched by the government.
The Gulf states Qatar, Oman, Kuwait and Saudi Arabia offer some form of unemployment support for citizens, while Bahrain also provides some form of unemployment insurance for resident non-citizen workers.
Residence permits in Gulf countries such as the UAE are traditionally tied to employment. Under recent reforms, UAE residents whose visas have been canceled can stay for up to six months, up from 30 days previously.
The changes are part of the UAE’s broader vision to attract and retain talent in the country.
read more:
Everything you need to know about the UAE’s new unemployment insurance scheme
UAE workers must opt ​​in to unemployment insurance from 2023, cost shows
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