Embassies in the UAE has given an extension for non-members to enrol in the unemployment insurance system. The government has extended out the deadline for collecting penalties from people who do not join the plan until October 1. Previously, the ministry had indicated that penalties would be enforced on workers who failed to register by July 1.
The unemployment insurance plan gives up to 60 percent of the basic wage for a maximum of three months after job loss, excluding disciplinary dismissals. The ministry highly advises participation for personnel in the federal government sector, commercial sector, and free zones.
Certain groups, such as investors, domestic workers, temporary contract employees, residents under 18, pensioners with pensions, and those who have acquired new employment, are excluded from the plan. While about 4.6 million workers have enlisted since January, the government thinks that many are still not members.
The extension intends to allow small-income individuals who have not yet enrolled the chance to join the plan. It is the obligation of the employee, not the company, to become a member of the Employment Loss Insurance Scheme.
Employees earning below 16,000 dirhams may join by paying a monthly premium of 5 dirhams, while those earning over 16,000 dirhams pay 10 dirhams each month. Premiums might be paid monthly, quarterly, semi-annually, or yearly. Additional insurance advantages are also available.
To claim compensation, subscribers must be enrolled for at least 12 continuous months and file an application within 30 days after quitting their work. Compensation is not granted if the employee finds another job or departs the country.
Workers who have not yet registered may register via the Involuntary Loss of Employment Scheme website, mobile app, ATMs, Business Service Centers, Al Ansari Exchange, banking apps, telecom firms, or through text messaging.