13 May 2022
UAE Unveils Unemployment Insurance Plans for Emiratis and Residents
The Index Today
The United Arab Emirates has introduced an unemployment insurance plan to aid its citizens and residents who lose their jobs.
According to The National, the scheme, which will come into effect in January 2023, will afford Emirati and expat employees in the public and private sectors, a basic monthly payment. The new Federal law was announced on Thursday by the Minister of Human Resources and Emiratisation, Dr. Abdulrahman Al Awar.
As per the new scheme, employees will be required to contribute to an insurance company enterprise. Should an employee get laid off work, they will be entitled to claim 60% of their basic monthly salary (up to AED 20,000 a month) for a fixed period of time that would enable them to cover expenses.
As per Bloomberg News, this comes as part of the UAE’s efforts in introducing more inclusive and flexible labour legislations that would make it more convenient for international employees to live and work in the country.