Page 51 - AAE PR REPORT December 2023

12/19/23, 9:55 AM What is the unemployment insurance scheme in the UAE?
What is the unemployment insurance scheme in the UAE?
A guide to the country’s mandatory program for employees

The unemployment insurance scheme in the UAE offers financial security in times of job loss
Unemployment insurance (UI) provides protection for when an employee loses their job. As of
January 1 this year, the United Arab Emirates (UAE) has officially enacted its federal law on UI.
Despite maintaining a low unemployment rate — averaging 2.5 percent over the past decade
compared to the Middle East and North Africa’s 6.8 percent — the UAE is still committed to
providing financial security with its UI scheme.

The unemployment insurance program in UAE safeguards individuals during employment
challenges. Furthermore, it exemplifies the government’s unwavering dedication to cultivating a
secure work environment labor market.

What is unemployment insurance?

Unemployment insurance is a type of benefit for individuals who become unemployed through
circumstances beyond their control. For instance, they may have involuntarily lost their employment
due to layoffs. As a temporary safety net, it allows people to sustain themselves financially while
actively seeking new employment opportunities.

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