Page 55 - AAE PR REPORT December 2023

12/19/23, 9:56 AM What is the unemployment insurance scheme in the UAE?
Emirate ones. This strategy not only facilitates a safety net for individuals facing job loss but also
contributes to the broader objective of fortifying the resilience and adaptability of the UAE
workforce. Providing financial security during transitional phases between employment allows
subscribers to concentrate on pursuing other job opportunities.

2. Flexibility

With the option to pay monthly, quarterly, half-yearly or annually, you can choose a payment
schedule that aligns with your preferences and circumstances. The relatively minimal premium of
either $1.36 or $2.72 per month (plus VAT) is also reasonable, making it accessible to a broad
spectrum of the workforce.

3. Efficiency

The country’s unemployment insurance program is unique because private insurance providers pay
the compensation rather than the government. Like the UAE’s Workers Protection Program, the
scheme operates through an insurance pool led by Dubai Insurance. This approach introduces
efficiency and reduces bureaucratic processes, making it easier for subscribers to pay and claim.

4. Supportive of economic development

According to Dr. Abdulrahman Al Awar, “The new unemployment insurance law is an essential part
of the legislative and legal structure that the government is keen to develop to meet the requirements
of the national economy.” He is the minister of Human Resources and Emiratisation.

By offering financial support to the insured during periods of unemployment, the scheme
contributes to economic stability and resilience. It also helps the country achieve a competitive
knowledge economy by making its labor market more conducive, attracting and retaining
international talent.

“This supports the UAE’s endeavors to be the next capital of the future and a global incubator for
talent and companies and investments, which can be achieved through economic and social
development and the empowerment of human capital,” added Al Awar.

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