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Insurance Coverage for the Unemployed in The UAE – January 2023

20/5/2022

His Excellency Dr. Al Awar, Minister of Human Resources and Emiratisation on 12 May 2022, introduced adoption of new Federal Law on the unemployment insurance scheme through insurance packages, from January 2023 to employees of all nationalities.

Employees will berequired to make a small contribution to the unemployment insurance plan, the employees who lose their jobs underunforeseen circumstances will receive cash support. The scheme will provide upto 60 per cent of their basic salaries every month for a limited period untilthey find an alternate job. However, if an unemployed person is unable to finda new job within a particular span of time (yet to be specified), financialassistance will be terminated.

Nevertheless, the scheme shall not apply to domestic workers, workerswith temporary contracts, minors (individuals under the age of 18) and pensioners.

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