UAE to fine employees for not registering for mandatory unemployment insurance scheme From January 1, 2023, all employees (including Emiratis and expatriates) working in the private and federal government sectors must register for the insurance scheme. This benefit is for those who lose their job for their own reasons. (Employees to be fined for not getting insurance against job loss UAE)
Investors, domestic workers, temporary contract workers, minors below 18 years of age, pensioners who are eligible for pension and newly employed retirees are exempted from registering under the scheme.
Employees with a basic salary below Dh16,000 will be required to pay a premium of Dh5 per month or Dh60 per annum plus VAT. 60 percent of the average basic salary will be compensated for loss of employment for three consecutive months.
Employees with a basic salary above Dh16,000 are required to pay an annual premium of Dh10 per month or Dh120 under the scheme.
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The policy term is up to two years. Subscription from Dubai Insurance is free. But services like exchange houses, telecom firms and banks may charge additional fees. Those who join the scheme have to pay the contribution for at least 12 months. At the same time, the authorities clarified that it is not the employers who have to do the procedures to join the insurance scheme, but the workers themselves.
Story Highlights: Employees to be fined for not getting insurance against job loss UAE