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Details

Unemployment Insurance Scheme

Open Date : 01/06/2024| Close Date: 31/10/2024
• Objective and subject: Unemployment Insurance Scheme: The scheme ensures that workers have access to a temporary income during periods of unemployment until alternative job opportunities become available. By subscribing to the Unemployment Insurance Scheme, workers can receive 60% of their basic salary if they become unemployed for a period not exceeding three months, according to the applicable terms and conditions. The subscription is offered at a nominal cost that workers can pay monthly, quarterly, semi-annually, or annually. Therefore, it is essential to subscribe to or renew the Unemployment Insurance Scheme through the available subscription channels to benefit from the advantages of the unemployment insurance system and avoid a financial penalty of AED 400. Additionally, if the insured fails to pay the insurance premiums according to the selected payment frequency for more than three months, a fine of AED 200 will be imposed, and the insurance certificate will be cancelled. Compliance with the law spares workers from the specified financial penalties and ensures a stable and decent life for them and their families during periods of unemployment. • Expected Decisions for implementation: Supporting workers financially, ensuring financial stability, and encouraging them to adhere to the system.

Outcome

Implementing a mandatory measure aimed at ensuring temporary income for employees during periods of unemployment, encouraging workers to subscribe or renew their participation in the system through available channels, and imposing financial penalties (400 AED) on those who fail to comply with the conditions, to ensure adherence and achieve financial and social stability.

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