The UAE Ministry of Human Resources and Emiratisation (MOHRE) has outlined four major benefits of the Unemployment Insurance Scheme, a forward-thinking initiative that covers both UAE nationals and expatriates working in the federal government and private sectors across the country. This system is designed to offer financial protection to employees who face job loss through no fault of their own.

According to the Ministry’s official social media platforms, the insurance system provides a social safety net for workers during periods of unemployment. It grants eligible individuals a monthly cash compensation of up to three months based on their basic salary. The initiative also serves to encourage UAE nationals to join the private sector, supported by various government empowerment programs. Moreover, it boosts the competitiveness of Emirati talent and enhances the overall attractiveness of the UAE labor market.

The scheme operates under Federal Decree-Law No. 13 of 2022, which aims to maintain a decent standard of living for unemployed workers and their families, offering financial aid until they secure new employment opportunities.

However, the law excludes specific groups from coverage, including: business owners/investors, domestic workers, temporary contract employees, individuals under the age of 18, and retirees who receive a pension and have rejoined the workforce.

MOHRE has also clarified four eligibility conditions for receiving compensation:

1. The insured must have been subscribed to the scheme for at least 12 continuous months.

2. The termination should not be due to disciplinary reasons.

3. Claims must not involve fraud or manipulation, and the company must not be fictitious.

4. Compensation will be suspended if the individual starts a new job during the compensation period.