UAE job loss insurance from January 1: How long will it take to get cash benefit of up to Dh20,000?
Employees who lose their jobs as a result of termination — except for disciplinary reasons — are entitled to compensation for up to three months
By Web Desk
Published: Thu 29 Dec 2022, 11:45 AM
Last updated: Thu 29 Dec 2022, 12:31 PM
Subscription to the UAE's landmark job loss insurance scheme is set to open in a couple of days as it becomes mandatory for all employees starting January 1, 2023.
This insurance for both Emiratis and expats guarantees financial security in case they suddenly lose their jobs. Employees will have to pay a premium that ranges from Dh5 to Dh10 per month. They may also opt for quarterly, semi-annual, or yearly payments.
In an explainer that the Ministry of Human Resources and Emiratisation (Mohre) shared on Twitter on Thursday, the authority clarified that the compensation should be paid within two weeks from the date the claim is submitted.
Once signed up, an employee who gets terminated will be entitled to 60 per cent of their basic salary (capped at Dh10,000 and Dh20,000 per month, depending on the package) for three months. Certain conditions, however, must be met.
Here are more details about the compensation, as explained by Mohre:
• The cash benefit is provided to those enrolled in the scheme for at least 12 months
• Anyone who loses their job as a result of termination (except for disciplinary reasons or resignation) is entitled to a maximum of three-month cash compensation
• The payout can go as high as Dh10,000 per month for those with a basic salary of Dh16,000 or less
• It reaches a maximum of Dh20,000 for those with a basic salary that exceeds Dh16,000