The deadline to enroll in the UAE Unemployment Insurance Scheme was Sunday, October 1st. If you missed this deadline, it’s crucial to check for any fines and make immediate payments to avoid potential issues with your work visa. The Ministry of Human Resources and Emiratisation (MoHRE) has warned that failure to sign up could result in visa complications (announced on November 15th).
To check for fines and make payments, you can utilize the MoHRE smart application, their website, or visit authorized business service centers. Previously, workers were informed that they would face AED400 fines for failing to register on time. In order to support individuals, MoHRE is permitting requests for installment-based fine payments and will consider appeals for exemptions, provided all necessary supporting documents are provided.
MoHRE emphasizes the importance of adhering to the agreed payment schedule and paying insurance fees on time. Failure to do so will result in an additional AED200 fine and cancellation of the insurance policy. Note that some employees will be unable to renew their work visas until fines are settled.
If you received a work permit after the October 1st deadline, you have four months from the permit’s start date to enroll in the scheme.
What is the UAE Unemployment Insurance Scheme?
The recently introduced scheme aims to provide private-sector workers with greater job security. In the event of job loss due to circumstances beyond their control, the plan offers cash compensation for a period of three months. This scheme is mandatory for both private and public sector workers and features two categories based on basic salary.
Employees earning a basic salary of AED 16,000 or below are required to pay AED5 per month or AED60 annually, whereas those with a basic salary exceeding AED 16,000 must pay AED10 per month or AED120 annually. Payments can be made monthly, quarterly, semi-annually, or annually.
As of November 15th, over 6.6 million people in the UAE have enrolled in the unemployment insurance scheme. Stay informed and secure your financial stability.