The federal government and private sector employees can subscribe to the new Unemployment Insurance Scheme from January 1, 2023, which was announced on Wednesday.
The insurance scheme is divided into two categories according to the Ministry of Human Resources and Emiratisation (MoHRE). The first covers those with a basic salary of Dh16,000 and less. The premium for the insured employee in this category is set at Dh5 per month (or Dh60 annually).
The second category includes those with a basic salary exceeding Dh16,000. The insurance premium, in this case, is Dh10 per month (or Dh120 annually). The payment can be made by the employees monthly, quarterly, half-yearly, or on an annual basis. The value of the insurance policy is subject to value-added tax (VAT).
Premiums for the scheme are to be paid by the employees themselves and, therefore, do not pose any additional expenses on firms.
