UAE: Over 5.73 Million Employees Enroll in Job Loss Insurance Scheme
The required job loss insurance plan in the UAE has seen over 5.73 million employees actively sign up, according to the Ministry of Human Resources and Emiratization (MoHRE). The staff has demonstrated a strong commitment to this program, underscoring its significance and applicability.
Mass Participation in Job Loss Insurance
Among the 5.73 million subscribers, approximately 5.6 million are employed in the private sector, while the remainder work in federal government departments. The broad inclusion of both private and public sector employees underscores the scheme's comprehensive reach.
Upcoming Deadline and Fines
The MoHRE issued a timely reminder to residents, emphasizing that the subscription deadline for the job loss insurance scheme is October 1. Those who fail to enroll by this date may face a Dh400 fine. To avoid penalties and take advantage of the scheme's benefits, eligible employees are urged to complete their registrations promptly.
The scheme's coverage extends to various employee categories, but it excludes specific groups such as investors (business owners who manage their enterprises directly), domestic workers, temporary employees, minors under the age of 18, and retirees who receive pensions and have joined a new employer.
Low-Cost Safety Net
The UAE's job loss insurance scheme serves as a valuable safety net for employees. It offers financial support for a limited duration in the unfortunate event of job loss, providing individuals with a degree of financial stability during challenging times.
Two-Tiered Insurance Structure
The scheme is structured into two categories based on employees' basic salaries:
For individuals earning a basic salary of Dh16,000 or less, the insurance premium is set at Dh5 per month, and the maximum monthly compensation is capped at Dh10,000.
Employees with basic salaries exceeding Dh16,000 fall into the second category, where the insurance premium is Dh10 per month, and the monthly compensation limit is Dh20,000.
To be eligible for insurance compensation, an individual must maintain continuous subscription to the scheme for at least 12 consecutive months. However, this right to compensation is forfeited if the beneficiary cancels their residency and departs from the country or secures a new job.
Empowering Employees with Financial Security
The UAE's job loss insurance scheme empowers employees by providing a financial safety net during times of uncertainty. Its broad participation across various employment sectors signifies its importance as a measure to protect and support the country's workforce. The upcoming deadline serves as a crucial reminder for eligible individuals to enroll promptly and secure their financial well-being in the face of unforeseen job loss.