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98.8% of private sector workforce enrolled in worker protection insurance: MoHRE

98.8% of private sector workforce enrolled in worker protection insurance: MoHRE
26 Apr 2024 09:53

SAMI ABDULRAOUF (DUBAI)

Data from the Ministry of Human Resources and Emiratisation (MoHRE) revealed that 98.8% of the private sector workforce is now under the protection of the worker protection insurance system, which safeguards employees’ financial entitlement rights, including the payment of any outstanding wages. The high percentage indicates a commitment from employers towards labour rights, particularly in terms of wage payments, in line with the regulations governing labour relations. This commitment fosters balanced and stable employment relationships, as governed by the Regulation of Labour Relations, its executive regulations, and ministerial resolutions.has reiterated its dedication to upholding labour rights, emphasising that wage settlements are governed by the contractual agreements between employers and employees. These contracts, which outline the terms of wage disbursement, are recorded within the Ministry’s digital systems and adherence to the stipulated employment conditions.


The Ministry stressed the importance of flexibility within employment relationships, provided they operate within the regulatory framework designed to protect the rights of all involved parties. The wage settlement process depends on the nature of the contract established between the employer and the worker, which must be accessible in the Ministry’s digital records.


The MoHRE explained that the six methods for wage settlement in the UAE labour market are commission-based, monthly, weekly, hourly, productivity-based, and daily.


Ministry data showed that over the past five years, private sector companies paid over Dh232 million to workers for entitlement claims, within the framework of providing social protection and welfare for the country’s workforce. 


The data also indicated that over the past five years, more than 26,000 workers benefitted from the worker entitlement protection programme, including claims related to unpaid wages, end-of-service benefits, and other legal entitlements, with an average compensation per worker of Dh8,000, reaching up to Dh20,000.


The wage protection system enables employers to fulfil their obligations towards their employees conveniently through a strategic partnership with the Central Bank of the UAE. Wages are considered late if they are not paid within 15 days from the due date, or as stipulated in the employment contract.

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