Home » World » “UAE to impose fines for rejecting mandatory unemployment insurance scheme”

“UAE to impose fines for rejecting mandatory unemployment insurance scheme”

Dubai: Those who do not join the mandatory unemployment insurance scheme that came into effect in the UAE will be fined from June 30.

The fine is 400 dirhams (about Rs. 9000). UAE requires all employees working in federal government institutions and private companies to join the insurance scheme by the 30th of this month. Ministry of Human Resource Indigenization has informed.

The insurance scheme has been implemented by classifying the employees into two categories.

Employees earning a basic salary of 16,000 dirhams (Rs 3,60,283) or less per annum are required to pay a premium of 5 dirhams (Rs 112.5) per month.

Meanwhile, employees earning a basic salary of more than Dh16,000 will have to pay Dh10 (Rs 225) per month.

There is facility to pay premium in monthly, every three months, once in six months and once in a year. However, premiums must be paid continuously for at least 12 months to be eligible for insurance.

If they lose their job within this period, they will not get compensation under the scheme. Self-resignation or disciplinary dismissal will not be eligible for compensation.

Employees are entitled to compensation for three months in case of loss of employment. The compensation will be calculated at 60 percent of the basic pay.

The ministry also reminded that other benefits received will not be considered for compensation.

#Penalty #enrolling #unemployment #insurance
2023-05-31 20:30:00

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.