UAE workers in the public and private sectors will be covered by unemployment insurance from the start of 2023, Abdulrahman Al Awar, Minister of Human Resources and Emiratisation said.
The decision was made during a cabinet meeting on May 9, which was chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The UAE cabinet has approved an unemployment insurance program to provide income support to unemployed people for a limited time.
The cabinet estimated that the cost of unemployment insurance would be between Dh40 and Dh100 per year. The insurance plan will entail paying 60% of a worker’s basic income for a set amount of time in the event of job loss.
The unemployment insurance plan aims to increase the competitiveness of the job market, offer a social security safety net for workers in the event of job loss, and provide a stable working environment for everybody.
However, Investors, domestic workers, temporary workers, people under the age of 18 years, and retirees with a pension who start a new job will not be covered by the unemployment insurance scheme.
According to Al Awar, the unemployment insurance system will be available to all workers in the UAE’s public and private sectors who are looking for work after losing their current position.
Al Awar said that the employees who lose their jobs will receive cash support for a period of time until the employee finds another job.
He also said that the purpose of the program is to maintain workplace stability. UAE wants to attract quality human resources while ensuring job security.