“Unemployment Insurance System in the UAE: Enhancing Competitiveness and Attracting Skilled Emirati Cadres”

• Literally: The system includes holders of golden residencies

Dubai: Muhammad Yassin

Khalil Khoury, Undersecretary of the Ministry of Human Resources and Emiratisation for Human Resources Affairs, revealed that 3 million, 333 thousand and 693 employees working in the federal and private sectors have participated in the unemployment insurance system as of yesterday, Tuesday.

Khoury said in an exclusive interview with Al-Khaleej that the unemployment insurance system is an umbrella of job security that guarantees enhancing the competitiveness of the labor market in the UAE and is one of the factors for attracting Emirati cadres and competencies and international skills, and motivating them to work and job stability for all workers.

He added that the unemployment insurance system, which was launched last January and includes workers in the federal and private government sectors, is a step that enhances the competitiveness of the labor market by relying on innovative mechanisms, without incurring any costs to employers and employers.

Aisha Belharfia, Acting Undersecretary for Emiratisation Affairs and Assistant Undersecretary for Labor Affairs, said in a statement to Al Khaleej that the unemployment insurance system includes golden residency holders working in the federal government and the private sector, and optional for workers in free zones and semi-governmental sector employees. There are two categories under the umbrella of the unemployment insurance system, the first is for those whose basic salary is 16 thousand dirhams or less, and the value of the insured employee’s contribution within this category is 5 dirhams per month, and the maximum value of the monthly compensation is 10 thousand dirhams, while the second category includes those who exceed Their basic salary is 16 thousand dirhams or more, and the subscription value for this category is 10 dirhams per month, and the maximum value of the monthly compensation is 20 thousand dirhams, and the compensation is due on condition of subscription for at least 12 consecutive months in the insurance.

She explained literally that the right of the insured to claim the value of compensation is forfeited in the event that he leaves the country or joins a new job, and the period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim.

The insurance program compensates the insured with a sum of money for a period not exceeding three months, provided that he does not resign or is dismissed for disciplinary reasons. The compensation that the eligible employee receives is calculated at 60% of his average basic salary in the last six months before being unemployed.

The system is mandatory

It should be noted that the unemployment system is mandatory, and Article No. 11 of Cabinet Resolution No. 604 of 2022 regarding the unemployment insurance system specified imposing fines amounting to 400 dirhams on everyone who did not commit to participating in the system until next June 30, unless Extension of the prescribed deadline.