The Ministry of Human Resources and Emiratisation in the United Arab Emirates announced the start of disbursing compensation to employees participating in the unemployment insurance system, with financial amounts amounting to 10 thousand dirhams per month for participants in the first category, and an amount of 20 thousand for participants in the second category in the program.
Payment of compensation to subscribers to the unemployment insurance system
The Ministry called on employees and workers participating in the unemployment insurance system in the Emirates to begin the procedures for submitting claims for compensation, in accordance with Federal Decree Law No. 13 of 2022.
Compensation for employees who lost their jobs in the UAE
These compensations apply to employees who lost their jobs after completing 12 months of participating in the insurance system, but on the condition that they did not lose their jobs for disciplinary reasons.
Unemployment insurance in the UAE
The unemployment insurance system in the United Arab Emirates stipulates that the subscriber to the system is entitled to obtain compensation insurance if he pays the subscription value for 12 consecutive months without interruption.
Compensation value for each employee
Based on the statement issued by the Ministry of Human Resources in the United Arab Emirates, the maximum compensation that is scheduled to be disbursed to each employee reaches 10 thousand dirhams for employees of the first category whose basic salary does not exceed 16 thousand dirhams.
20,000 UAE dirhams are paid to employees in the second category, whose basic rank exceeds 16,000 dirhams.
Federal law decree regarding unemployment insurance
It is noteworthy that a federal decree law in the United Arab Emirates regarding the unemployment insurance system has required workers and employees in the federal and private government sectors to subscribe to the unemployment insurance system starting from the first of January 2023.
Requests to disburse compensation to eligible employees who are out of work will then be considered, after they have paid the insurance contribution for a period of 12 consecutive months (from January to December 2023).
Compensation is on a monthly basis at a rate of 60%.
The Ministry of Human Resources in the UAE explained that the unemployment insurance system in the Emirates aims to compensate the insured in the event of unemployment, and the compensation is on a monthly basis at the rate of 60% of the basic salary for a period of 3 months from the date of unemployment.
The period of 3 months is the maximum period for compensation for each claim in the event of unemployment due to the end of his service, as this system aims to enhance the competitiveness of Emirati resources in the labor market, while providing them with a social protection umbrella.
Steps to claim unemployment compensation
The Ministry of Human Resources in the UAE has identified the 9 steps to assess the claim for unemployment compensation for subscribers to the insurance system, by following these steps::
1- Go to the website of the Insurance Complex, which includes the insurance company that subscribes to it and the insured.
2- Click on submit a claim.
3- Write the required data.
4- Click on Request a one-time verification code.
5- Click on continue submitting demands
6- Confirm the date and reason for canceling the work permit, and attach supporting documents.
7- Choose the subscriber’s bank or exchange company, verify the required data and write it correctly.
8- I urge you to submit the claim.
