The United Arab Emirates has announced the decision to provide unemployment insurance to all workers in the country, as per the state-run WAM news agency report.
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 supports the strategic economic security of the UAE, the WAM news agency reported.
Here’s what you need to know about the unemployment insurance:
The plan is part of the country’s efforts to attract and retain employees by reducing business risks, so that the employees who lose their jobs will receive cash support for a period of time until the employee finds another job.
The report further notified that as of 2023, employees will have to contribute to 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.
UAE workers in public and private sectors will benefit from program and it will be applicable to all nationalities. As UAE is made up of seven emirates including Dubai and Abu Dhabi, it has been introducing new labor regulations that make it easier for foreigners to work.
Notably, just as foreign residents make up more than 80% of the population of the UAE and have been a mainstay of the economy, the UAE Cabinet has approved new entry, residence scheme for foreigners.
Meanwhile, Al Awar has said that the new law and announcement is a landmark step in boosting the business environment in the UAE and enabling national talents and competencies, strengthening partnership with the private sector, 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 announcement was made at a media briefing organised by the Ministry of Human Resources and Emiratisation on Friday at the Ministry’s headquarters in Dubai, “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.”
(With inputs from agencies)