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Over 6.7 Million Subscribed to UAE’s Unemployment Insurance Scheme

According to Mohre, over 6.7 million people have joined in the Unemployment Insurance Scheme.

The UAE’s Ministry of Human Resources and Emiratisation has reported that more than 6.7 million individuals have enrolled in the Unemployment Insurance Scheme, offering a 3-month compensation to insured individuals in case of unemployment.

Scheme Overview and Compensation Benefits:

The Unemployment Insurance Scheme provides a safety net for insured individuals, granting them a 3-month compensation period in the event of unemployment until they secure a new job. This initiative aims to support workers during transitional periods in their careers.

Enrollment Deadline and Penalties:

The enrollment deadline for the scheme expired on October 1, 2023. Non-subscribers are subject to a Dh400 fine, with additional fines such as the inability to obtain a work permit until fines are settled. 

The fine may also be deducted from the worker’s salary or end-of-service gratuity.

Individuals who have subscribed to the scheme but fail to make regular payments will face a Dh200 fine, and their insurance policy may be canceled.

Grace Period for Recent Work Permit Holders:

Those who obtained work permits after October 1, 2023, have a grace period of 4 months from the mentioned date to subscribe to the Unemployment Insurance Scheme. 

Failure to do so within the stipulated timeframe will result in a Dh400 fine.

The Unemployment Insurance Scheme serves as a crucial support system for individuals facing unemployment, emphasizing the UAE’s commitment to its workforce’s well-being and financial security.

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