Not all workers in the UAE are eligible to claim UAE Unemployment Insurance benefits - here is a full list!
17 January 2023| Last updated on 17 January 2023
Find out if you qualify for the UAE Unemployment Insurance scheme's payout.
Starting from 1st January 2023, full-timed employed workers in the UAE must subscribe to the mandatory job loss insurance scheme or risk a fine.
What is the UAE Unemployment Insurance scheme?
If you were to lose your job while employed in the UAE, the new Unemployment Insurance scheme acts as a financial safety net, providing foreign expat or Emirati employees a cash sum every month for a maximum of three months based on their basic salary.
It is a mandatory insurance plan that all full-time employed workers in the government and private sector must be subscribed to by 30th June 2023 or risk a fine of AED 400, said UAE officials.
Those who were earning a basic salary of AED 16,000 or less per month will receive a monthly cash sum that will not exceed AED 10,000.
Workers who were earning a basic salary above AED 16,000 per month will get a monthly cash sum capped at AED 20,000.
For more information, including where to apply and how much it costs, we've put together a complete guide to the UAE Unemployment Insurance scheme that can answer any question you might have about the programme.
However, not all UAE employees are eligible to claim the insurance scheme's cash sum. If you're currently working in the country, here is a list of who is eligible for the UAE Unemployment Insurance, and who cannot claim unemployment insurance benefits.
Who is eligible for the UAE Unemployment Insurance compensation claim?
You must meet all of the following categories below to claim job loss compensation from your insurance plan.
- Emiratis and foreign expats who work full-time jobs in either the government or private sector
- Those who have paid for the insurance subscription for a minimum of 12 months and are legally present in the UAE
Those eligible to claim compensation from their insurance will receive 60% of their basic salary for up to three months as a cash sum.
The cash compensation will be calculated based on your average 6-month basic salary before unemployment.
Who is NOT eligible for the UAE Unemployment Insurance compensation claim?
The following categories of UAE employees are not eligible to claim job loss insurance compensation:
- Individuals who never subscribed to the insurance
- Employees who subscribed to the Unemployment Insurance scheme but stopped paying for at least 3 consecutive months
- If the employee chose to resign from their job
- Domestic workers
- Part-time or temporary workers (non full-time work)
- If the individual found a new full-time job in the UAE
- Employees under the age of 18
- Free zone employees
- Business owners who own and manage their businesses
- Retired and receive pensions
- If the individual was fired for disciplinary reasons as per the UAE's Labour Law in the private sector (Federal Decree-Law No. 33 of 2021), the Human Resources Law in the federal government, or any other applicable laws
- If the establishment that the individual works in is fictional
- If the insurance claim involves fraud or deception
What happens if I stopped paying for my insurance subscription?
If you're subscribed to the job loss insurance scheme but stopped paying for at least 3 consecutive months, you will need to re-subscribe by getting a new insurance, and pay all missed amounts including a fine of AED 200.