The United Arab Emirates (UAE) has a thriving economy and is home to a diverse population. However, like any other country, it has its share of unemployment, which can be a challenging situation for individuals and their families. To support those who have lost their jobs due to no fault of their own, the UAE has introduced an unemployment insurance scheme. In this blog post, we’ll discuss the things you need to know about the UAE unemployment insurance scheme.
What is the UAE Unemployment Insurance Scheme?
The UAE unemployment insurance scheme is a government initiative that provides financial support to those who have lost their jobs. The scheme is intended to help UAE citizens and expatriates who have been involuntarily terminated from their jobs due to economic reasons. The insurance is provided by the Ministry of Human Resources and Emiratization (MOHRE), which is responsible for overseeing the scheme’s implementation.
Who is eligible for the UAE Unemployment Insurance Scheme?
To be eligible for the UAE unemployment insurance scheme, individuals must meet the following criteria:
- Be a UAE citizen or an expatriate with a valid residency visa.
- Have worked for at least 12 months in the UAE.
- Be between the ages of 18 and 60.
- Have been involuntarily terminated from their job due to economic reasons.
- Have not found alternative employment within 60 days of termination.
How does the UAE Unemployment Insurance Scheme work?
The UAE unemployment insurance scheme provides financial support for up to 12 months. The amount of support is calculated based on the individual’s last salary, with a maximum amount of AED 10,000 per month. The first three months of support are provided at 60% of the last salary, while the remaining nine months are provided at 50%.
To apply for the scheme, individuals must submit an application to the MOHRE within 10 days of their termination. The application must include a copy of the employment contract, a copy of the Emirates ID, and a bank statement. If the application is approved, the support is provided through a debit card.
What are the benefits of the UAE Unemployment Insurance Scheme?
The UAE unemployment insurance scheme provides several benefits, including:
- Financial support during a challenging time.
- Time to find alternative employment without financial pressure.
- Reduced stress and anxiety associated with job loss.
- Moreover, the scheme also helps in boosting the overall economy of the UAE by ensuring that people have access to a safety net while they are out of work.
The UAE unemployment insurance scheme is an essential initiative introduced by the government to help individuals who have lost their jobs due to economic reasons. It provides financial support for up to 12 months and ensures that those who are out of work have access to a safety net while they look for alternative employment.
KLOUDAC Accounting Firm Dubai, UAE
The scheme has several benefits, including reduced stress and anxiety associated with job loss, and helps in boosting the overall economy of the UAE. If you are eligible for the scheme, make sure to apply within ten days of your termination to receive the necessary support via KLOUDAC.