The UAE’s Ministry of Human Resources and Emiratisation has reported that more than 6.7 million individuals have enrolled in the Unemployment Insurance Scheme, offering a 3-month compensation to insured individuals in case of unemployment.

Scheme Overview and Compensation Benefits:

The Unemployment Insurance Scheme provides a safety net for insured individuals, granting them a 3-month compensation period in the event of unemployment until they secure a new job. This initiative aims to support workers during transitional periods in their careers.

Enrollment Deadline and Penalties:

The enrollment deadline for the scheme expired on October 1, 2023. Non-subscribers are subject to a Dh400 fine, with additional fines such as the inability to obtain a work permit until fines are settled. 

The fine may also be deducted from the worker’s salary or end-of-service gratuity.

Individuals who have subscribed to the scheme but fail to make regular payments will face a Dh200 fine, and their insurance policy may be canceled.

Grace Period for Recent Work Permit Holders:

Those who obtained work permits after October 1, 2023, have a grace period of 4 months from the mentioned date to subscribe to the Unemployment Insurance Scheme. 

Failure to do so within the stipulated timeframe will result in a Dh400 fine.

The Unemployment Insurance Scheme serves as a crucial support system for individuals facing unemployment, emphasizing the UAE’s commitment to its workforce’s well-being and financial security.