For the time, UAE residents will be able to receive monthly cash payments if they lose their jobs as part of a new UAE unemployment benefits scheme.
Impacting both UAE residents and UAE nationals, plans are underway to launch the new UAE unemployment benefits scheme in January 2023.
It is part of a new federal law first announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE.
Following a UAE cabinet meeting in Abu Dhabi earlier this week, Sheikh Mohammed revealed plans for a “system of unemployment insurance” on Twitter.
He said it would “compensate the insured worker with a cash amount for a limited period in the event of his unemployment”.
His Highness added: “The aim is to enhance the competitiveness of the labour market, provide a social umbrella for its workers, and establish a stable work environment for all”.
Since the announcement, more information on the UAE unemployment benefits scheme has been revealed by the Ministry of Human Resources and Emiratisation (MOHRE) on Thursday May 12.
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Under the programme, individuals will be expected to pay into a company insurance scheme, which will be provided via UAE insurance companies in partnership with public and private employers.
Payments are expected to be small amounts of around Dhs100 per year for basic insurance cover, with the option to select and pay for higher levels of protection likely.
Speaking today, His Excellency Dr. Abdulrahman Abdulmannan Al Anwar, Minister of Human Resources and Emiratisation, said the unemployment benefits scheme would be “flexible to allow the workers to agree on additional benefits with the insurance provider”.
He added that MOHRE will play a pivotal role in the scheme and develop the mechanism for its operation and fees.
At a media briefing today, Dr. Al Anwar explained that should an employee lose their job, they would be eligible to receive monthly payments of around 50 to 60 percent of their basic salary, up to a maximum of Dhs20,000 per month.
The financial support will only be valid for a limited time period, yet to be specified, or until the individual starts a new job.
The positive step forward for the protection of workers is part of the UAE’s strategy to attract the best international talent to the country’s workforce.
In addition to the new UAE unemployment benefits scheme, MOHRE announced plans to raise the current Emiratisation rate by two percent annually until 2026.
The target would apply to skilled jobs in private sector businesses with more than 50 members of staff.
Along with the unemployment payment scheme, this resolution is aimed at supporting the strategic economic security of the UAE.
Jan 2023.
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