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UAE to introduce unemployment insurance to all employees; applicable to all nationalities

By wasmulhaq 
Updated Date

Dubai: The United Arab Emirates has taken the decision to provide unemployment insurance to all workers in the country, according to a state-run news agency.

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The Minister of Human Resources and Emiratisation, Abdulmannan Al Awar, on Friday reaffirmed the announcement by the Vice President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, to raise the percentage of Emiratisation to support the strategic economic security of the UAE, the WAM news agency reported.

The plan is an effort to attract and retain employees by reducing business risks. It is a good scheme for those who lose their job because they will get money for a period of time unless they get their next job.

The report further noted that, as of 2023, employees will have to contribute to an unemployment insurance plan through insurance companies. Unemployment insurance fees may range between 40 dirhams and 100 dirhams per year, and the plan would include paying 60% of the worker’s basic salary for a certain period.

Those who are working in the UAE in public or private sectors are expected to get benefits from this programme. People belonging to any other nation can also avail the insurance facility. The UAE has been planning to introduce a new labour law to allow foreigners to work in the country easily.

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Meanwhile, Al Awar has said that the new law and announcement are a landmark step in boosting the business environment in the UAE and enabling national talents and competencies, strengthening partnerships with the private sector, and increasing the attractiveness of the UAE labour market and its ability to attract local and international talent by way of incentives and safety nets that support healthy and sustainable economic growth.

The new announcement has been “focusing on the new law on unemployment insurance, and the decision to raise current Emiratisation levels by 2% annually for skilled jobs in private sector establishments with 50 or more employees, and to achieve an increase in the overall rate of Emiratisation of 10% by 2026.”


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