Arab countries celebrated this new year by marking it in history. With the arrival of the new year in the UAE, some laws have been implemented that affect both locals and foreigners. Let’s look at some of the laws that have already come into effect this year. (new laws imposed uae from January 1)
Unemployment Insurance Scheme
Expatriates working in the private and government sectors can get social security through the unemployment insurance scheme if they suddenly lose their jobs. It provides financial assistance up to three months under unemployment insurance scheme if an employee is dismissed by the company.
The subscription to the unemployment insurance scheme has started on 1st January 2023. The ministry has also invited UAE nationals and those working in the government and private sectors to subscribe to the scheme.
The subscription fee depends on the basic salary of the employee. Those with a basic salary of AED 16,000 or less pay a subscription fee of AED 5 per month (AED 60 annually) and are entitled to a monthly cash compensation of up to AED 10,000. People whose basic salary is above Dh16,000 must pay Dh10 per month (Dh120 annually) and are entitled to a maximum monthly compensation of Dh20,000.
Insurance fees can be paid monthly, quarterly, semi-annually, or annually. Job loss
Insurance compensation is calculated at 60 percent of the employee’s basic salary for the last six months prior to termination.
Read Also: 30 percent tax on alcohol has been waived in Dubai
Emiratization Act
Companies with more than 50 employees must adhere to the 2 percent Emiratization rate for skilled jobs (skilled jobs) to avoid penalties. Companies that do not comply will have to pay fines. A fine of AED 6,000 per month will be imposed. The fine should be paid in one installment.
Ban on single-use plastics
Single-use plastics have been banned in Ajman and Umm al-Quwain from January 1, 2023.
Abu Dhabi, Dubai and Sharjah will ban single-use plastics in 2022. Retailers are charging consumers 25 fils per bag to reduce the use of single-use bags and plastic in the country.
Read Also: Now women will also drive the Makkah-Madinah Haramain train
Corporate tax
From this year, firms with annual profits of Dh375,000 will have to pay 9% tax. Tax is levied not on the total turnover of the company, but rather on the profits. Individuals holding a freelance permit under self-sponsorship and earning more than the threshold are subject to corporate tax. It does not apply to personal income from bank deposits, savings programs, other investments and foreign exchange gains.
Story Highlights: new laws imposed uae from january 1