UAE Plans to Introduce Unemployment Insurance for All Workers

Omar Tamo, Bloomberg News

A construction worker on the site of a commercial property development in the Jumeirah Village Circle district of Dubai, United Arab Emirates, on Tuesday, Feb. 22, 2022. A government committee set up before the pandemic enlisted some of Dubai’s largest developers as members to try to manage supply and demand in the property market and ensure that state-owned businesses don’t crowd out private builders. , Bloomberg

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The UAE to provide unemployment insurance to all workers in the country, state-run WAM news agency reports.

Plan is part of efforts to attract and retain employees by reducing business risks
Employees who lose their jobs will receive cash support for a period of time until the employee finds another job, Gulf News reports, citing Abdulrahman Al Awar, Minister for Human Resources and Emiratisation
As of 2023, employees will have to contribute to unemployment insurance plan through insurance companies
Unemployment insurance fees may range between 40 dirhams and 100 dirhams per year; plan will include paying 60% of the worker’s basic salary for a certain period
UAE workers in public and private sectors to benefit from program; it applies to all nationalities
NOTE: The UAE, made up of seven emirates including Dubai and Abu Dhabi, has been introducing new labor regulations that make it easier for foreigners to work
- Foreign residents make up more than 80% of the population of the UAE and have been a mainstay of the economy
- UAE Cabinet Approves New Entry, Residence Scheme for Foreigners