In 2024 over 10,500 workers accessed the emirate's unemployment insurance policy according to the data published by the ministry of human resources and emiratisation (MOHRE). The ministry reported that these workers received essential financial support during their unemployment periods. The policy currently has 9m subscribers.
The system offers financial compensation of 60% of an individual’s base salary for up to three months, helping workers maintain stability as they search for new employment. Data released by MOHRE emphasised that the programme is vital for building a resilient workforce capable of adapting to economic changes while enhancing job security in the region.
According to news reports the Ministry is also focused on ensuring efficient compliance and integrating modern technology to streamline access and management of benefits, demonstrating a proactive approach to meet the evolving needs of the UAE’s diverse workforce.
The scheme has two categories. The first category is for employees earning a basic salary of AED16,000 or less. This has a monthly subscription fee of AED5. Under this category the compensation can reach a maximum of AED10,000 per month.
The second category is for employees earning above AED16,000, this has a monthly subscription fee of AED10. The maximum compensation in this category can be AED20,000 per month.
To qualify for compensation, workers must meet several requirements, including a minimum subscription period of 12 consecutive months and no disciplinary termination of employment. Compensation is capped at 12 months throughout an individual’s employment in the UAE.
Certain groups are exempt from the system, including investors, domestic workers, temporary contract employees, individuals under 18, and retirees returning to work.
The unemployment insurance system is underwritten by a pool of nine insurance companies in UAE and it began in October 2023 to provide relief to employees for up to three months if they lose their jobs through termination.