Authorities announced on Thursday that over 8 million employees have registered for the UAE's unemployment insurance scheme since its launch in January 2023.
Overseen by the Ministry of Human Resources and Emiratisation (Mohre), this insurance is mandatory for all national and expatriate employees across both public and private sectors, including those working in free zones. Failure to sign up or renew the insurance policy could result in a fine of Dh400. However, certain groups are exempt from the scheme, such as business owners managing their own enterprises, domestic workers, temporary employees, minors under 18, and retirees transitioning to new employment.
The ministry strongly encourages all eligible employees to register promptly to avoid penalties and to benefit from the financial safety net provided by the scheme. Designed to be affordable, this unemployment insurance offers support for a limited period in the event of job loss. The scheme is divided into two categories: Employees with a basic salary of Dh16,000 or less pay an insurance premium of Dh5 per month, with maximum monthly compensation reaching Dh10,000. Those earning more than Dh16,000 will pay a premium of Dh10 per month, with monthly compensation capped at Dh20,000.
To be eligible for compensation, beneficiaries must have maintained their subscription for at least 12 consecutive months. Compensation rights are lost if an individual cancels their residency and leaves the country or finds new employment. Employees are advised to renew their insurance before it expires and must apply for compensation within 30 days following the termination of their employment. Claims can be filed through the ILOE website or its app.
