does uae provide an insurance for unemployment
- Author- Vijaya
- Publish Date-
Every year thousands of skilled and qualified professionals head to Dubai to explore the great employment opportunities it provides. It is no secret that the city has made great endeavors in the field of innovation, promoting entrepreneurship, and creating an eco ecosystem for Businesses to thrive.
Till now the government of UAE has taken several historic steps to boost the Emirates' economy to increase the employment opportunities in the country but In the age of rapid market fluctuations, sometimes the employees take a big hit. During the vivid pandemic and the economic slowdown, many working professionals were laid off by companies around the world, UAE and Dubai were no exception.
The world is still facing some chills of the covid pandemic and many potential employees are still uncertain regarding their future. This uncertainty has resulted in a decrease in the number of expatriates coming to Dubai to start their careers. The employees are hesitating to fly to another country, as they are uncertain regarding their job assurance there.
To terminate the risks of job loss in the future and provide much-needed financial assistance to the employee in case they lose their jobs, the UAE government has announced a historic and one of its type schemes, unemployment insurance. The insurance will ensure that the employee never faces an extreme financial crisis in case they lose their jobs. The schema will benefit the local UAE employee and expatriate employees.
Let us learn more about the unemployment insurance
READ ALSO: WHAT IS THE IMPORTANCE OF A UAE PASS
What is unemployment insurance
Unemployment insurance is an insurance cover that will provide coverage equal to 60% of the basic salary amount to the policyholder in case they lose their jobs. The scheme aims to protect skilled professionals who have lost their jobs. The benefits can be availed by Emirati and expatriates working in the public and private sectors of the UAE.
The scheme will provide job and financial security to potential employees. This will enable the UAE to attract more talent in the country from around the world. By implementing a nationwide social and financial security system, talent can be attracted most efficiently and practically.
How does it work
After the new guidelines of the UAE government, it is mandatory for all employees either in the private sector or in the public sector, to apply for insurance. The insured workers will get cash support worth 60% of their basic salaries to the maximum amount of Dh 20,000 in case the employee loses his job. To benefit from the policy, a premium that may range from Dh 40 to Dh 100 needs to be paid annually.
Who are exempted from the benefits of the Scheme
Unemployment insurance is meant to cater to the currently working professionals. The following candidates are not eligible to apply for unemployment insurance.
- Senior citizens/Retired professionals
Senior citizens who have retired from their professional work life can't avail the benefits of the policy.
- Workers on Temporary contract
A worker who has been employed on a temporary or periodic contract, can not enjoy the cover of unemployment insurance.
- Workers below the age of 18
A 15-year-old can work in Dubai if the respective legal conditions are fulfilled and a juvenile work permit is attained. But a worker below 18 years can not apply for unemployment insurance.
When will the scheme be implemented
A clear and definite outline of the policy has not been yet established. The Minister of Human resources and Emiratisation has announced the plan to start the nationwide implementation of the scheme in the year 2023.
By 2023, the employees will need to contribute to the unemployment insurance plan through insurance companies.
Now UAE has made sure that aspiring professionals are not provided with employment opportunities only but are also provided the needed assistance even after they lose their job.
Unemployment insurance is another reason for you to explore the amazing career opportunities that the Emirates provides If you are planning to visit the country you can start your preparation with our assistance as we will make sure that you get the most important requirement for your visit to the Emirates i.e a UAE Visa, approved in shortest possible time.
Unemployment insurance will make sure that the employees in Dubai never face a financial crunch even if they lose their jobs. A 60% of basic salary insurance cover will protect the aspiring professionals during future uncertainties and market fluctuations. So now you can pursue your dream career in Emirates without worrying about the future.