Page 52 - AAE PR REPORT December 2023

12/19/23, 9:55 AM What is the unemployment insurance scheme in the UAE?
According to Milan Vodopivec, formerly a lead economist with the World Bank, UI is the
predominant public income support program for the unemployed in developed nations.

Until 1945, countries in the West were the only ones to implement such a program. In the ‘90s, the
world saw more transition countries introduce it. In the past years, more developing countries have
been following suit.

How does the unemployment insurance scheme in

UAE work?

The UAE unemployment insurance scheme, introduced by the government in May 2022, became
operational on January 1. Governed by Federal Decree-Law No. 13 of 2022 and Cabinet Decision
No. 97 of 2022, the program mandates enrollment for all Emirati and expatriate employees in both
public and private sectors.

As announced by the Ministry of Human Resources & Emiratization (MoHRE), this requirement
has also been extended to employees in free zones and semi-governmental entities, excluding those
in DIFC and ADGM, where enrollment remains voluntary. DIFC and ADGM stand for Dubai
International Financial Center and Abu Dhabi Global Market, respectively.

The following are exempted:

Investors or owners of the businesses in which they work
Domestic workers

Employees who have temporary contracts

Juveniles below the age of 18

Retired employees who have a new job

The scheme, operating through agreements with nine local insurance companies, offers
compensation at 60 percent of an employee’s basic salary for up to three months. An employee can
either belong to two categories:

Category A:

Basic Salary: $3,400 or less
Insurance cost per month: $1.36 + VAT

Monthly compensation: Up to $2,700

Category B:

Basic Salary: above $3,400

https://economymiddleeast.com/news/unemployment-insurance-in-uae/ 2/7