Razak Orumanayur
Abu Dhabi: Huge response to the insurance scheme introduced as a temporary relief for those who lose their jobs in the UAE. 60,000 people joined the policy in the first two days.
In the case of job loss in the UAE, a plan to pay a fixed amount for up to three months has been implemented through the new insurance. The new project has created great relief and excitement among the expatriates.
The scheme came into effect from January 1, 2023. Membership of the scheme can be availed by all employees working in the country including all private sector.
Both federal government employees and private sector employees will benefit from the scheme. This insurance scheme has been implemented in two categories. The first category includes those whose basic salary is 16,000 dirhams or less. They have to pay five dirhams per month and 60 dirhams per year as insurance premium.
In the second category, those whose basic salary is above Dh16,000 have to pay a premium of Dh120 per year at the rate of Dh10 per month. There is a facility to pay the premium on an annual basis, every six months, every three months or every month.
The premium amount is to be paid by each employee himself. Employers do not have to pay. The insurance is designed to provide up to three months of basic salary in case of loss of employment due to non-employee reasons.
In case of loss of employment, employees in the first category will receive a maximum of Dh10,000 and employees in the second category will receive a maximum of Dh20,000. Application must be made within 30 days from the date of loss of employment. The payment will be received within two weeks of receiving the application.
Only those who have worked for at least 12 consecutive months as a member of the insurance scheme can get the benefit. In case of taking up another job or leaving the country, the benefit will not be eligible.