UAE Unemployment Insurance: Emirates Group employees exempted – News

Airline spokesman confirms voluntary unemployment insurance for Emirates Group employees

It is not mandatory for Emirates Group employees to join the Unemployment Insurance Scheme.

The UAE has made it mandatory for employees working in the private sector, free zones and federal government entities to join the Involuntary Unemployment (ILoE) scheme from 1 January 2023. Those who fail to join by June 30 face a Dh400 fine. Failure to pay due within 90 days will result in an additional Dh200 fine.

An Emirates spokesperson confirmed that “Emirates Group employees are voluntarily enrolled in unemployment insurance”.

Emirates Group subsidiaries include Dubai’s flag carrier Emirates and airport services provider dnata. The group’s headcount rose by 20.1 per cent, from 85,219 employees to 102,379 by the end of the 2022-23 financial year, as retaliation travel helped the group rebound strongly.

The Emirates Group posted a record profit of AED10.9 billion for the financial year ending March 31, 2023, compared with a loss of AED3.8 billion last year. The group’s revenue was AED 119.8 billion, an increase of 81% over the previous year.

Two schemes were introduced under the ILOE scheme. In category A, employees with a basic salary of AED 16,000 or less must pay AED 5 plus VAT per month (or AED 60 plus VAT for a year), up to a maximum of AED 10,000 per month, up to three months. For Category B, workers earning more than Dh16,000 are required to pay Dh10 plus VAT per month (Dh120 plus VAT for one year), up to a maximum of Dh20,000 per month for a maximum of three months.

If unemployed, eligible employees will receive monthly cash benefits equal to up to 60% of their average base salary for six months. It is also mandatory that the employee must be a legal resident of the country.

If unemployed, employees will be paid monthly after 12 months instead of being paid every three months.

waheedabbas@khaleejtimes.com