The UAE’s new unemployment insurance scheme is a mandatory programme that all Emirati and foreign employees in the public and private sectors must subscribe to from January 1, 2023, the Ministry of Human Resources and Emiratisation said on Wednesday.
The social security support programme, which was announced in May, is a welcome financial safety net that will pay Emiratis and residents a cash sum for three months if they lose their jobs.
The system will ensure the sustainability of a decent life for Emiratis and residents during their unemployment period and will reduce business risks, the ministry said at the time.
On Wednesday, the ministry signed an agreement with nine insurance companies that sets up the framework for the unemployment insurance scheme and released more details about the programme, including how much it will cost and that employees will pay for it themselves.
“The new unemployment insurance law is an essential part of the legislative and legal structure that the government is keen to develop to meet the requirements of the national economy,” Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said on Wednesday.
“This supports the UAE’s endeavours to be the next capital of the future, and a global incubator for talent and companies and investments, which can be achieved through economic and social development and the empowerment of human capital.”
Here is everything you need to know about the new initiative.
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