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The grace period for unemployment insurance subscription is ending soon Employees who fail to meet the June 30 deadline will have to pay penalties.
1. Dh400 fine: For employees who fail to subscribe to the scheme before June 30, 2023.
2. Dh200 fine: For faili
ng to pay premiums for more than three months from the due date. (This violation will also lead to the cancellation of insurance certificate)
3. Dh20,000 fine for every case: For employers who will be caught colluding with the insured to obtain unemployment insurance benefits
We are facing a couple of issues when applying for the insurance scheme which results in a short delay in completing the transactions.
Hence, it is advised to apply for the scheme as soon as possible. What if you apply a day or two ahead of the deadline and a technical problem arises? This would delay the procedure, and would have to pay a penalty.
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Employees with a basic salary of less than Dh16,000are required to pay Dh5 per month or Dh60 per annum plus VAT as a premium.
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Compensation benefit: Up to Dh10,000per month (maximum up to 3 months per claim).
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Employees with a basic salary above Dh16,000 are required to pay Dh10 per month or Dh120 per annum plus VAT as a premium.
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Compensation benefit: Up to Dh20,000 per month (maximum up to 3 months per claim).
Required Documents for Involuntary Loss of Employment Scheme
1. Emirates ID copy
2. Mobile Number
Exempted Categories
Investors (owners of companies they work at)
Domestic helpersTemporary-contract workers
Juveniles under the age of 18
Retirees who are entitled to a pension and joined a new job
Terms and conditions
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Cash benefit shall be provided for maximum three consecutive months for a claim only for employees who pay the monthly premium for at least 12 consecutive months.
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The monthly compensation is 60 per cent of the average basic salary over the most recent six months prior to job loss.
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During the insurance period over the entire work life of the insured in the UAE, the aggregate claim payment shall not exceed 12 monthly benefits (regardless of the number of claims submitted).
