UAE Introduces Mandatory Unemployment Insurance Scheme with June Deadline for Enrollment


The United Arab Emirates (UAE) takes proactive steps to safeguard its workforce with the introduction of a compulsory Unemployment Insurance Scheme, which took effect on January 1, 2023. To ensure coverage, individuals are required to subscribe to the scheme by June 1, with a grace period until June 30, after which non-compliant individuals will face penalties.

The Unemployment Insurance Scheme encompasses workers from free zones, as well as those employed in semi-government sectors, providing a comprehensive safety net for employees across various industries. For as little as AED60 per year, workers can secure coverage under the insurance scheme, offering financial support of up to AED60,000 in the event of job loss.

To learn more about the enrollment process and application procedures, individuals are encouraged to refer to the Arabian Business guide, offering comprehensive guidance on accessing and benefiting from the Unemployment Insurance Scheme. By proactively participating in this initiative, employees in the UAE can enhance their financial security and mitigate the impact of unexpected job loss.