30 likes | 38 Views
Eligible workers can receive benefits and financial protection in case of unemployment with the UAE Unemployment Insurance Scheme
E N D
Effectivefromthe1stof January2023,thefederalgovernmentandprivatesectorworkersare compelledtosubscribetotheUAEunemploymentinsuranceschemeaspartofthe Ministryof HumanResourceandEmiratisation(MOHRE)'sgroundbreakingsocial security policy.ConstitutionalDecree LawProp. 13 of 2022, given on 4October (the Workers'Compensation Law),andDecisionProp.97of2022onthemechanismsandlimits for the rolloutof the WelfareBenefits Scheme formthelegal frameworkfor the program statute,whichwasofficiallyconfirmedinMay2022.Primarily,theschemeestablishesafund into whichworkersinboththeprivateandpublicsectorsoughttopaya nominalpremium during thephaseofemployment inexchangefortheguaranteeofunemploymentbenefits (security) inan event ofloss of job. • TheScopeoftheUAEUnemploymentInsuranceScheme • The scheme appliestoallworkers in theprivateandfederal sectorsexcept: • Domesticworkers • Employeesona temporarybasis • Juvenilesundertheageof18 • Retireeswhoreceiveapensionandhavejoineda newemployer. • Investors,businessownerswhoownandmanage theirbusinessesthemselves
WhatistheSubscriptionCostfortheUnemployment Insurance Scheme? • Employeesearningless than AED 16,000 per yearwill be required to pay a monthly insurancefee of AED 5. The annual cost becomes 60 AED. In thiscase, a monthly salary ofAED 10,000 is the mostthat may be paid out. • Thatearningabove AED 16,000peryear in base salary will be requiredto contribute AED 10 per month or 0.3% of their income,theyearlycost isAED 120.The compensation for thiscategory doesnot exceedamonthly amount of AED 10,000. • The employeehastheoption ofpaying the premiummonthly, quarterly, semiannually,orannually.Inadditiontotheaforementioned basicpackage,the covered workermaysubscribetoextrabenefits withthe insurancecompany's approval. • What is the Primary Objective of the UAE Unemployment Insurance Scheme? • Primarily,theobjectiveoftheunemployment insuranceplanis to; • Guaranteea stipulatedamount of money to thepolicyholderonce theyleave work • Toraise Emiratis'abilityto compete in thejob market • Assisttheunemployedinmaintainingaminimumstandardoflivingthroughsocial programs. • To acquirethebest internationaltalentpoolandto buildacompetitive knowledge economyinthe UAE. • Remuneration Benefits andAmounts • Compensationpensioncontributions equaling60%ofaworker'sbasicsalaryareavailablefor up to threeyearsafter a worker loses employment. Iftheworker acceptsa newpositionor leavesthe country ofemploymentwithinthatperiod,they willno longer beeligible for compensation.UnderFederalLawNo.33/2021,employeesareonlyeligibleforthisbenefitif theyhavebeeninsuredforatleastayearandhavenotbeenfiredforcause(theLaborLaw). Itispossibleforacoveredworkerto negotiateforextrabenefitswiththeappropriate insurance providers, per a clause in the Unemployment Insurance Law. • ImpactoftheUAEUnemploymentInsurance • TheUnited ArabEmirates'(UAE)commitmenttoimprovingworkers'rightsandprotections andcreating amoresecureandattractiveemploymentmarket inorder torecruitahugetalent poolacrosstheworldisevidenced throughtheformationofasocialsecurityplan,whichis an encouraging development.Prior to the issuanceof thestatute,therewasno surety/ any form ofinsuranceupon losingajobin theUAE. Theincome support legislationprovides cashcompensation for up to three months.
SeektheExpertServicesofTopUAEEmployment Consultants Today! Have you subscribed to theUAEUnemploymentInsuranceScheme?Ifnot, kindly seekthe expert servicesandguidanceof adeptHRconsultantsinUAEtoday.Trustedlabor consultants offer top and efficient guidance to employees to seamlessly subscribe to the UAE UnemploymentScheme.