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Abu Dhabi: The United Arab Emirates (UAE) will introduce mandatory UAE Unemployment Insurance from Sunday 1 January 2023.
The UAE Ministry of Human Resources and Emiratisation (MoHRE) said the new scheme, initially announced in May, will provide up to three months of compensation to public and private sector employees who have lost their jobs.
The Unemployment Insurance Program is designed to create a low-cost job safety net that supports employees in their careers and provides them with job stability at no cost to employers.
MOHRE has now posted a video guide on social media explaining the benefits and costs of unemployment insurance in the UAE.
In the video, MOHRE explains the two types of insurance available to UAE citizens and expats based on salary.
The first category is eligible for monthly cash compensation of up to AED 10,000, while the second category has a maximum monthly cash compensation of AED 20,000.
Premiums can be paid monthly, quarterly, every six months or annually. The insurance compensation is calculated at 60% of the employee’s basic salary for the last six months before unemployment.
Compensation must be paid within two weeks of the date of the claim. The insured can submit claims through various claim settlement channels such as the website iloe.ae, the iloe smart application, or the call center of the insurance pool at 600599555.
Insureds must have subscribed for at least 12 consecutive months to be eligible for cash compensation. However, if they leave the country or take up a new job, they will lose their right to claim.
Investors – owners of the businesses they work for, domestic workers, temporary contract workers, minors under the age of 18, pensioners who receive a pension and start a new job are not entitled to participate in the insurance system.
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