22.5 C
Friday, December 1, 2023

“UAE: Non-compliance with Unemployment Insurance Results in Dh400 Fine, Deducted from Salaries”

The UAE has imposed fines for employees failing to subscribe to the unemployment insurance scheme by the October 1 deadline. Those who missed the deadline will face a Dh400 fine, while individuals who subscribed but failed to pay premiums for more than three months will be fined Dh200. The Ministry of Human Resources and Emiratisation (Mohre) warns of potential “administrative measures,” and unpaid fines could result in the denial of new work permits.

Fine Enforcement and Deductions

Employees can check if fines apply to them through the Mohre app, website, or business service centers. Fines can be paid in installments, deducted from salaries, or from end-of-service gratuity. Individuals fined have the option to appeal the penalty, with decisions issued within 15 working days.

Subscribers and Scheme Overview: Unemployment Insurance

As of November 15, over 6.6 million people have subscribed to the mandatory unemployment insurance scheme, which took effect on January 1, 2023. The scheme provides compensation for up to three months for Emiratis and expatriates employed in the federal government and private sectors who lose their jobs.

Deadline and Exemptions

Employees in private sector companies receiving work permits after October 1 must subscribe to the scheme within four months to avoid a Dh400 fine. Certain groups, such as investors, domestic workers, temporary employees, juveniles under 18, citizens eligible for retirement, and retirees receiving pensions, are exempt from unemployment insurance.

Scheme Categories and Compensation

The scheme comprises two categories based on salary. Those with a basic salary of Dh16,000 or below pay Dh5 per month (Dh60 annually), with a maximum monthly compensation of Dh10,000. Individuals with a basic salary exceeding Dh16,000 pay Dh10 per month (Dh120 annually), with a maximum monthly compensation of Dh20,000. Compensation can be claimed after 12 consecutive months of subscription.

Claim Conditions

Employees can claim compensation if they have been subscribed for at least 12 consecutive months and are not leaving the country or securing a new job. Compensation is granted for a maximum of three months from the date of unemployment, excluding terminations for disciplinary reasons. The amount is calculated at 60% of the average basic salary in the six months preceding unemployment.

Also Read

Traffic Update: Reduced Speed Limit on Vital Dubai-Sharjah Route

Dubai Retirement Visa: Eligibility, Expenses, and Key Information

Related Articles

Popular Route Gets a Boost: Leading Airline to Operate A380 Double-Decker on UAE Flights

 A380 Double-Decker Etihad Airways, the UAE's national carrier, has announced its decision to deploy the A380 double-decker aircraft on the New York JFK route,...

“Union Day Memories: Witnessing Two Historic Moments – Greetings to Sheikh Zayed, Farewell to British Forces”

Union Day When Len Chapman, a British expat, touched down in Dubai in March 1971, his journey began as an engineer at the newly...

“Transformative Journey: From Navigating Waters to Establishing a Business Empire in Dubai”

Navigating  In an unexpected turn of events, Dr. Azad Moopen, the entrepreneur behind the $2 billion-valued Aster DM Healthcare, reflects on his unique journey...

“Abu Dhabi Unveils New Rail Services to Enhance Transportation Network”

Rail Services  In a recent announcement, Etihad Rail and Abu Dhabi National Oil Company (Adnoc) have revealed plans to establish railway services connecting Abu...

Revealed: Most common, popular foods in UAE as eating patterns shift post-Covid

A recent report from UAE-based investment banking advisory firm Alpen Capital sheds light on the evolving eating habits of UAE residents following the Covid-19...

Latest Articles