Razak Orumanayur
Abu Dhabi: Huge response to insurance scheme introduced as temporary relief for those who lose their jobs in UAE. 60,000 people joined the policy in the first two days.
In the event of job loss in the UAE, a plan to pay a fixed amount for up to three months has been implemented through the new insurance. The new project has created great relief and enthusiasm among the expatriates.
The scheme came into force on 1 January 2023. Membership of the program can be used by all employees working in the country, including all of the private sector.
Both federal government employees and private sector employees will benefit from the program. This insurance scheme has been implemented in two categories. The first category includes those whose basic salary is 16,000 dirhams or less. They have to pay five dirhams a month and 60 dirhams a year as an insurance premium.
In the second category, those whose basic salary is more than Dh16,000 have to pay a premium of Dh120 per annum at the rate of Dh10 per month. It is possible to pay the premium on an annual, semi-annual, quarterly or monthly basis.
The premium amount must be paid by each employee himself. Employers don’t have to pay. The insurance is designed to provide up to three months of basic salary if you lose your job for non-employee reasons.
In case of job loss, employees in the first category will receive a maximum of Dh10,000 and employees in the second category will receive a maximum of Dh20,000. The application must be submitted within 30 days of the date of termination of the employment relationship. Payment will be received within two weeks of receipt of the application.
Only those who have worked for at least 12 consecutive months as a member of the insurance scheme can obtain the benefit. If you take another job or leave the country, your benefit will not be eligible.