Deadline to subscribe to “unemployment insurance” and avoid a fine
The Ministry of Human Resources and Emiratisation has issued a notice to all those covered by the unemployment insurance system, whether residents or citizens, to register as soon as possible before the first of next October to avoid the 400 dirham penalty imposed on non-subscribers.
The Ministry stated that although companies have the option of registering their employees in the system, it is the employee’s duty to participate as the system is free as the system covers citizens and residents working in the federal government and the private sector, and does not include investors who own the businesses in which they work, or auxiliary workers, Or temporary employees or minors under the age of 18, and retirees who got a job after receiving a pension.
There are multiple ways to register in the system through the Insurance Complex website or the Insurance Complex iloe smart application, or by using kiosks, self-service devices, business service centers, exchange centers, and mobile phone applications, The unemployment insurance system includes two categories, The first category is for those whose basic wage is 16,000 dirhams or les, The value of the employee’s subscription included is 5 dirhams per month (or 60 dirhams annually), The highest value of monthly compensation is 10,000 dirhams.
The second group includes those who earn more than 16 thousand dirhams per month from the basic wage, The maximum monthly compensation for this category is 20 thousand dirhams, with a monthly subscription cost of 10 dirhams (or 120 dirhams annually).
The insured loses the right to receive compensation unless he participates in the insurance program for at least 12 consecutive months If the claimant leaves the country or accepts a new job, he can still claim the compensation amount as long as the payment period does not exceed two weeks from the date of the claim if the insured does not resign, Whether or not he is dismissed for disciplinary reasons, the insurance program will pay him a cash sum for a maximum period of three months.
The eligible employee will be compensated 60% of his basic wage for the last six months before his dismissal.
