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Thursday, Oct 02, 2025

UAE rolls out unemployment insurance scheme

UAE rolls out unemployment insurance scheme

The UAE has started rolling out an unemployment insurance scheme that assures financial support for Emiratis and residents who lost their jobs until they find a new opportunity, the Ministry of Human Resources and Emiratization announced on Tuesday.
The compensation, which will be paid monthly, is calculated at 60 percent of the employee’s salary with a maximum of $5,400 (20,000 dirhams) for no more than three months from the date of their unemployment.

The ministry said the scheme aims to provide “social security” during unemployment, while reducing business risks, state news agency WAM reported.

“It also aims to boost the attractiveness of the UAE’s job market for the best international and national talents and contribute to building a competitive knowledge-based economy that is among the best globally,” the ministry added.

The insurance applies to public and private sector employees across the UAE, except investors, domestic helpers, part-time employees, juveniles under the age of 18 and retirees who receive a retirement pension, the ministry noted.

To be eligible for the scheme, employees need to have been insured for at least 12 months, calculated from the date of subscription in the insurance system. They also must not have been dismissed from their work for disciplinary reasons.
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