Penalty for not participating UAE unemployment insurance for Citizens and residents

What are the repercussions of failing to enroll in the unemployment insurance program in the UAE?

Read also: Warning from the Ministry of Human Resources and Emiratisation in the Emirates to companies and job seekers

Following the October 1st deadline for registration, there will be financial penalties imposed on UAE employees who have failed to enroll in the country's unemployment insurance plan.

Those individuals who have not registered for the program will be subject to a fine of AED400 ($109) levied by the UAE Ministry of Human Resources and Emiratisation (MoHRE).

In the past, the Ministry of Human Resources and Employment advised all employees to finish their registration before the October 1 deadline in order to avoid these fines.

A wide variety of individuals are covered by the unemployment insurance program in the UAE. These workers include those working in the government and private sectors, as well as UAE nationals, residents, and people working in free zones.

This was implemented in May of the previous year, and it ensures the safety of Emiratis as well as residents of the United Arab Emirates.

In the event that employment is terminated, it provides financial help for a length of time equal to three months.

Since it was first implemented on January 1, the Ministry estimates that more than 5.7 million workers have already signed up for participation in this labor program.

employees receiving basic monthly salary of AED16,000 or less pay AED5 per month as their subscription cost, while employees earning more over AED16,000 pay AED10 per month as their membership price. The subscription fee varies.

Employees have the option of subscribing to extra insurance benefits, which may be accomplished entirely online.

It is essential to take notice that even registered employees run the risk of incurring fines if they fail to keep up with their insurance payments. Fines of AED200 are levied for premiums that are paid late, and there is also the possibility that the worker's insurance certificate would be revoked.

However, persons such as business owners, domestic staff, temporary contract employees, those under the age of 18, pensioners receiving a pension who have re-entered the workforce, and those under 18 years old are eligible for exemptions from the law.

In order for participants to be eligible for compensation in the event that they lose their jobs, they must have been enrolled in the scheme for a minimum of 12 months prior to the loss of employment and must have submitted their compensation request within 30 days after ceasing employment.

Payments are determined based on sixty percent of the individual's base wage, with a maximum payout of twenty thousand emirates (AED) every month for a period of up to three months.

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