Human Interest

UAE Introduces Cash Benefits for Job Loss: A Safety Net for Residents

Three-Month Financial Support for Unemployed Residents in the UAE

A New Chapter in Employment Security

In a groundbreaking move, the UAE has introduced a cash benefit program offering financial support to residents for up to three months if they lose their jobs. This significant development offers a buffer against the financial instability that can accompany job loss.

The Framework of Support

The provision of monthly cash benefits is now available to those residents who have been part of the mandatory insurance against job loss since its inception in January 2023. To avail of this benefit, residents must renew their policy “immediately,” ensuring continuous financial protection against the unpredictability of job loss.

Avoiding Penalties

Dana Kansou, manager of Strategic Partnerships at Dubai Insurance, which manages the Involuntary Loss of Employment (ILOE) insurance pool, underscores the importance of timely renewal to avoid a cancellation of the insurance certificate and a fine of Dh400.

Compensation Claim Conditions

To be eligible for compensation, claimants must have been subscribed to the ILOE scheme for a minimum of twelve months. The process involves logging into the ILOE website, submitting a claim, and providing the necessary documentation to prove the involuntary loss of employment.

Determining the Compensation

The compensation amount is calculated at 60% of the average basic salary of the six months preceding unemployment. However, this is subject to a three-month cap per claim. If the maximum benefit is exhausted, the insurance certificate is considered canceled, and a new subscription period begins.

Incentives for Compliance

The initiative not only provides financial relief but also encourages companies to adhere to the laws, as non-compliance leads to penalties. Conversely, those who comply may benefit from reduced work permit costs, aligning financial incentives with the diversity goals.

A Model for Inclusivity

The UAE’s diversity quota is a model for inclusivity, demonstrating a commitment to creating a workforce that reflects a broad spectrum of nationalities and backgrounds. This policy is expected to enrich corporate cultures and drive innovation through diverse perspectives.


The UAE’s new rule for a 20% diversity quota in work permits and the provision of cash benefits for unemployed residents signify a progressive step towards inclusive growth and a resilient economy. It ensures that the workforce remains dynamic, diversified, and above all, supported during times of uncertainty.

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Exit mobile version