Today's Edition
SAMI ABDULRAOUF (DUBAI)
In a landmark achievement, the Ministry of Human Resources and Emiratisation has declared the successful registration of over 7 million employees under the Unemployment Insurance System since its launch on January 1, 2023.
The system, which covers federal and private sector employees, both citizens and residents, has been hailed as a "remarkable success," reflecting the nation's commitment to social welfare.
Exceptions are granted to investors, auxiliary workers, temporary contract workers, minors, and pensioned retirees re-entering the workforce. Non-compliance with registration requirements results in a Dh400 penalty, and employees can verify fines for non-subscription through the ministry's digital platforms.
The Ministry underscored the importance of adherence to Federal Law Decree No. (13) of 2022, which governs unemployment insurance, and awareness of the subscribers' regarding the system's benefits.
Designed to provide a safety net, the system ensures a stable livelihood for Emirati and expatriate workers and their families during employment transitions by providing a social protection umbrella. It also aims to attract and retain top international talent within the UAE's labour market.
The Ministry urged employees to register independently, although employers can facilitate this process at no extra cost. Registration can be completed via multiple channels, including the website of the Insurance Authority, the smart application for the Involuntary Loss of Employment (ILOE), self-service kiosks, business service centres, exchange centres, and smart phone applications for banks and financial institutions.
The system offers two subscription tiers based on salary, with fees set at Dh5 or Dh10 monthly and maximum compensation capped at Dh10,000 or Dh20,000, respectively. Eligibility for compensation requires a minimum 12-month subscription, with payouts calculated at 60% of the basic salary, or the ceiling amount according to the system in the last six months before unemployment.
The period for disbursing compensation does not exceed two weeks from the date of the claim, and the insurance programme compensates the insured with a cash amount for a maximum period of three months, provided they do not resign or are terminated for disciplinary reasons. The right of the insured to claim compensation ceases upon leaving the country or joining a new job.
The Ministry emphasised the system's role in bolstering the UAE's legislative framework, attracting skilled professionals, and fostering economic growth. It called for prompt enrolment to benefit from the system's provisions and encouraged employers to promote subscription among their workforce.
