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DUBAR – The Ministry of Human Resources and Emiratisation (MoHRE) today signed an agreement with nine local insurance companies to launch a new framework for unemployment insurance schemes under Federal Decree No. 13 of 2022 and Federal Decree. Relevant Cabinet Resolutions.
The new insurance scheme is designed to provide protection for employees of the private sector and the UAE federal government, providing cash compensation for a limited period of up to three months per claim if they terminate their employment for reasons beyond their control.
It also creates a safety net that supports employees’ career paths and enables the UAE’s career to be achieved by relying on mechanisms that do not incur additional costs to employers and are paid by employees themselves to secure their livelihoods and provide a balance in the job market. strategic goals and support the continuity and growth of economic activity.
Protection and authorization
The agreement was signed in the presence of Dr Abdulrahman Al Awar, Minister of Human Resources and Emirate, and Butti Obaid Al Mulla, Chairman of Dubai Insurance Company. The agreement was signed by MoHRE Deputy Human Resources Minister Khalil Al Khoori and Dubai Insurance Company CEO Abdul Latif Abu Qura.
Dr. Al Awar said: “The new unemployment insurance law is an important part of the government’s keenness to develop legislation and legal structures to meet the needs of the national economy. This supports the UAE’s efforts to become the next capital of the future and a global incubator for talent, companies and investment. , which can be achieved through economic and social development and human capital empowerment.”
“We are keen to accelerate the implementation of the Unemployment Insurance Act through this agreement, which outlines the practical details of implementing its provisions locally, including federal and private sector employees, resulting in a highly competitive and attractive labor market, while increasing the workforce stability in order to be able to contribute to building the best and most dynamic economy in the world.”
Implementations and Exceptions
Under the new insurance scheme, federal and private sector employees must join the scheme from January 1, 2023. Those excluded from the insurance plan include the investor – the owner of the establishment he or she works for, domestic helpers, casual employees on contract, minors under the age of 18, pensioners and re-employment retired people.
Insurance plans are divided into two categories – the first covers those with a basic salary of Dh16,000 and below. Covered employees in this category are covered for AED 5 per month (or AED 60 per year). The second category includes those with a basic salary of more than Dh16,000 and insurance costs Dh10 per month (or Dh120 per year). Employees can be paid monthly, quarterly, semi-annually or annually. The value of the insurance policy is subject to Value Added Tax (VAT).
Employees who work on a commission basis can also subscribe to the program.
monthly salary
A maximum of AED 10,000 per month for Category 1 and AED 20,000 for Category 2, where insurance benefits are calculated at 60% of basic salary per month, up to a maximum of three per claim per claim from the date of unemployment. months.
The insured (employee) must submit a claim through the three approved claims channels – Insurance Pool’s e-Portal, Insurance Pool’s Smart App, and Insurance Pool’s Call Center, provided that it is completed within 30 days from the date of unemployment.
Compensation will be paid within two weeks from the date of the claim, up to a maximum of three months per claim. Employees are eligible for compensation if they have been employed and enrolled in an insurance plan for at least 12 months, as long as they have not been fired for disciplinary reasons or resignation.
If the insured (employee) leaves the country or joins a new job, they are not eligible for compensation.
Multiple subscription channels
Employees can subscribe to insurance plans through Insurance Pool’s website, smart apps, bank ATMs, kiosks, business service centers, currency exchange companies, du and Etisalat, SMS or any other channel, as MoHRE may announce at a later date.
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