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Posted on October 13 2022

The new UAE unemployment insurance scheme to help those who lost jobs

By  Editor
Updated July 25 2023

Highlights of the new unemployment insurance scheme in the UAE

  • The UAE has launched a new UAE unemployment insurance scheme for those losing their job.
  • Under the scheme compensation for a period of up to 3 months will be paid to public and private employees who lose jobs.
  • The scheme is applicable to Emiratis as well as resident employees going through their period of unemployment.
  • Workers who lost their jobs can claim 60% of their last salary drawn up to AED20,000.

The UAE government has launched a new UAE unemployment insurance scheme to support those who lost their jobs. The aim is to ensure that these jobless workers including Emiratis and resident foreign workers have a sustained decent life during their period of unemployment.

The scheme was originally announced in May 2022. As per the scheme, workers in the public and private sectors on losing their jobs will be offered compensation for a period of up to 3 months. This was stated by the Ministry of Human Resources and Emiratisation.

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The benefits of the scheme

Besides giving support to jobless workers in the UAE, the scheme ensures that there are reduced risks for businesses. The scheme is expected to attract more of the best skilled and talented workers from abroad. Even internally, within the nation, top talents can utilize the support provided by this scheme until they find their next job.

Those workers who lost their jobs could claim 60% of their last drawn salary up to a monthly amount of AED20,000.

Who aren’t eligible for the scheme?

If you are an investor working in the companies you own, you won’t be eligible under this scheme. Also, part-time workers, domestic helpers, retirees, and children under 18 don’t have eligibility under the new scheme.

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The bottom line

This new scheme is beneficial for you if you are currently working in the UAE in a public or private firm. The government has introduced this new UAE unemployment insurance scheme for you to cope with times of difficulty until you find another job.

If you are willing to work in UAE, talk to Y-Axis, the leading immigration and career consultant in the UAE.

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