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Unemployment insurance for workers announced by Sheikh Mohammed

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Unemployment insurance for workers announced by Sheikh Mohammed

Employees will be protected against job loss under a new insurance system announced in the UAE. After chairing a UAE Cabinet meeting on Monday, the UAE Vice-President said the unemployment insurance program will pay a monetary amount to an insured person who loses his or her work unexpectedly for a certain length of time. Insurance products will be used to implement the system. An insured employee will be paid for a set period of time until he or she finds new employment. The law intends to improve Emiratis’ job market competitiveness as well as “bring the greatest international talent to the UAE.”
Employees will be required to contribute to an unemployment insurance plan through insurance firms beginning in 2023, as further notified in the report. Unemployment insurance premiums could range from 40 to 100 dirhams per year, with the plan covering 60 percent of the worker’s basic salary for a set term.
Sheikh Mohammed and his administrative center have not provided any further information about the scheme.
Unemployment insurance plans are in place in both emerging and developed economies, according to the International Labor Organization.

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