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UAE announces mandatory unemployment insurance from next year – News

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Employees of private sector companies and federal government departments can subscribe to the program for as little as AED 5 per month



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Posted: Wednesday, November 9, 2022 at 2:36 pm

Last update time: Wednesday, November 9, 2022 at 2:39 pm

The Ministry of Human Resources and Emiratisation (MoHRE) has announced that the purchase of an unemployment insurance scheme will become a mandatory requirement once the scheme takes effect on January 1, 2023.

Employees of private sector companies and federal government departments can participate in the unemployment insurance scheme for as little as Dh5 per month.

In the event of unemployment for non-disciplinary reasons, the program provides cash benefits for a limited period of no more than three consecutive months per claim.

Subscribe to a channel

>> Insurance Pool Website (www.iloe.ae) and Smart Apps

>> Bank ATMs and Self-Service Terminals

>> Business Service Center

>> Currency Exchange Company

>> du and Etisalat

>> SMS

Who will provide insurance?

According to MoHRE, the scheme will be offered by Dubai Insurance Company, which is representative of an insurance pool of nine companies:

>> Dubai Insurance Company

>> Abu Dhabi National Insurance Company

>> Al Ain Ahlia Insurance Company

>> UAE Insurance Company

>> National General Insurance Company

>> Oriental Insurance

>> Abu Dhabi National Takaful Insurance Company

>> Oman Insurance Company

>> Oriental UNB Takaful Insurance Company

Premiums and Compensation

There are two categories:

>> Category 1: Basic salary Dh16,000 and below

Premium: Dh5 per month

Monthly Compensation: Not to exceed Dh10,000

>> Category 2: Basic salary above Dh16,000

Premium: Dh10 per month

Monthly Compensation: Not to exceed Dh20,000

How to Calculate Claims

>> Monthly compensation is 60% of the average salary for the last 12 months prior to unemployment.

>> Maximum compensation for any one claim: three consecutive months

>> Maximum Benefit Period: The total claim amount shall not exceed the 12-month benefit amount (regardless of the number of claims submitted) during the insurance period for the entire working life of the insured in the UAE.

Eligibility Criteria

According to the insurance pool’s website, in order to qualify for compensation, the insured must meet the following criteria:

>> Minimum subscription period is 12 consecutive months.

>> All premiums must be paid on time.

>> The reason for unemployment should not be resignation.

>> Unemployment cannot be due to disciplinary reasons.

>> Claims must be submitted within 30 days of unemployment.

>> Workers should not have existing complaints related to absenteeism.

>> If an employee’s claim involves fraud or deception, the employee will not be entitled to compensation.

>> Unemployment should not be the result of a non-peaceful strike or lockout.

>> The insured must be legally residing in the UAE.

>> Unemployment should not be one of the following reasons:

– war, insurrection, uprising, armed rebellion, revolution, military or usurped power, invasion, act of foreign enemy, hostilities, civil war or civil strife.

– Pollutant discharge, nuclear incident, radioactive, toxic, explosive or other hazardous effects of any explosive nuclear device or part of such device.

– Biological or chemical contamination caused or facilitated by terrorism.

– Direct action by the UAE government resulting in the confiscation or nationalisation of the employer’s facilities or the confiscation of his/her money, resulting in bankruptcy.

– Force majeure (unforeseen circumstances) under the Civil Transactions Act.

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