UAE Unemployment Insurance Scheme Does Not Apply to Emirates Workers

Emirates and Dnata employees have been informed that they are not required to register for the UAE’s unemployment insurance scheme. This news came in an email sent to them on Friday.

The unemployment insurance scheme, known as the Involuntary Loss of Employment insurance scheme, became effective on 1 January 2023. It covers both Emirati and foreign employees in the public and private sectors.

Employees working in free zones are required to register for the unemployment insurance program. This program serves as a financial safety net for Emiratis and residents who lose their jobs. They receive a cash sum for three months to support them during their unemployment period.

To be eligible for unemployment financial support, employees must register and pay an insurance premium based on their monthly salary. The deadline for registration is 30 June. Failure to register by this date will result in a fine of AED 400.

It is worth mentioning here that this announcement from Emirates follows the recent news of the company granting an AED 10.6 billion ($2.9 billion) bonus payout to its staff. More than 50,000 employees received 24 weeks of pay with their May salaries as recognition for the company’s exceptional performance in the previous year.

For more detailed information on the Involuntary Loss of Employment insurance scheme in UAE, please click here.

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