UAE Unemployment Insurance: The UAE recently announced the introduction of a new unemployment support programme to provide protection and assist residents and citizens who may lose their jobs. This scheme provides employees with a security buffer to assist them in the unfortunate event that their unemployment ceases and will help to ease the financial burden whilst looking for a new job.

Experts have applauded the move of UAE Unemployment Insurance, saying it will help draw and retain talent within the country across both the public and private sectors. Previously the ability to live in the UAE was predominantly linked to an employment visa or owning a business within the country, as is common in many nations across the GCC. However the introduction of a raft of new visas such as the Golden Visa, the Job Seeker Visa and other longer term visas, means that employees now have further opportunities to stay within the country if they do lose their jobs.

The new federal scheme was announced last week by Dr Abdulrahman Al Awar who is the Minister of Human Resources and Emiritisation.

UAE Unemployment Insurance: Is it applicable to both Emarati’s and Expatriates?


Yes, the recent announcement refers to both Emarati and foreign employees, in regards to UAE Unemployment Insurance.


How does it work?


UAE Unemployment Insurance: How does it work?

The mandatory scheme is scheduled to commence in January 2023 and the law that was announced states that employees will pay into an insurance company initiative. Employees will be able to select from a variety of packages on offer from different insurers within the region.

If an employee loses their job, they will then be entitled to receive 60% of their basic pay each month for a limited time (to a maximum of 20,000 AED) to assist with the cost of living. If the person doesn’t find employment within this period, the financial support will cease, however at the time of publishing it’s not yet clear what that time period is. 

Wages in the UAE are generally broken down into several components, with the “basic wage” generally accounting for 50-65% of an employee’s wage.

How much does it cost?


UAE Unemployment Insurance: How much does it cost?


The recent article explained that insurance packages will be created to accommodate different ranges of salaries and match everyone’s financial capability. 

The above information was taken from a recent news article on the introduction of the UAE unemployment insurance scheme and to the best of our knowledge is correct at the time of blog publishing. We understand further information will be released in due course.