Employees in the United Arab Emirates who did not enrol in the unemployment insurance programme by the October 1 deadline will be fined Dh400. A Dh200 punishment is imposed on those who have signed up for the programme but have not paid the premiums for more than three months.
The Ministry of Human Resources and Emiratization (Mohre) said on Wednesday that employees would not be eligible for new work permits if the penalties are not paid, threatening to take “administrative measures.” Additionally, their salary or end-of-service gratuity may be withheld to cover the fines.
Workers can use the Mohre app, website, or company service centres to see if they have been fined. They have the option to pay the penalty over time. The decision on an appeal of a fine is rendered within a working day for those who have been penalised.
As of November 15, over 6.6 million individuals had signed up for the required programme, according to the Mohre.
The incredibly affordable job security plan went into force on January 1, 2023. If they lose their employment, expatriates and Emiratis working for the federal government and private companies would be compensated for a maximum of three months.
fresh workers
Private sector workers who obtain work permits after October 1st are required to enrol in the programme within a period of four months. There is a Dh400 fine for not doing so.
Investors (business owners who own and manage their establishments), domestic workers, temporary employees, minors under the age of 18, citizens who are eligible for retirement, and retirees who receive pensions and have joined a new employer are among the groups that are exempt from receiving unemployment insurance.
Two categories comprise the scheme:
The first pays an insurance premium of Dh5 per month (Dh60 yearly) for those whose basic wage is Dh16,000 or less. Dh10,000 is the maximum monthly compensation amount.
The second is for people whose base pay is more than Dh16,000; the monthly insurance fee is Dh10 (or Dh120 yearly). There is a Dh20,000 monthly maximum on the remuneration for this group.
The employee may get insurance compensation if they have been a subscriber for a minimum of 12 months in a row. If they relocate or take a new employment, they are not eligible for reimbursement.
If the employee was not let go for disciplinary grounds, the payment is made for a maximum of three months after the date of unemployment.
60% of the average basic pay for the six months preceding to unemployment is used to compute the compensation amount.
