The UAE Unemployment Insurance Scheme covers employees in both the federal government and private sectors, providing them with a low-cost job security net. According to Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, the scheme, as a pillar of the legislative infrastructure that aims to attract Emirati and international talents and empower them, “has had a positive impact on the labour market”. The insurance is divided into two categories, with premiums set at AED 5 and AED 10 per month respectively, and monthly compensation capped at AED 10,000 or AED 20,000. Claimants must have been subscribed to the scheme for at least 12 consecutive months, and claims must be submitted within 30 days of job loss. The compensation is calculated at the rate of 60% of the average basic salary in the last six months before unemployment and paid for a maximum of three months per claim.
The Unemployment Insurance Scheme is part of the regulatory ecosystem set up by the Regulation of Labour Relations law and its executive regulations. After more than a year of implementation, the law has improved the UAE’s labour market’s flexibility, competitiveness, and productivity. Dr Al Awar revealed that the year 2022 witnessed an 11% growth in the total number of private sector establishments in the UAE, compared to 2021, and a 38% growth in the total number of work permits issued by the ministry. In particular, women’s participation in the private sector increased by 20% in 2022, reflecting the efficiency of labour market legislation and national policies to achieve greater inclusion and diversity in the workplace. Stringent inspection processes have been introduced to ensure efficient, accurate and transparent inspections based on risk assessment. In 2022, MoHRE completed more than 612,000 inspections of private sector establishments, unveiled more than 12,000 violations, and referred more than 3,000 establishments to the Public Prosecution as they failed to pay wages through the Wages Protection System (WPS).