UAE employees failing to subscribe to the unemployment insurance scheme by the October 1 deadline face an AED 400 fine. An additional AED 200 fine applies to those who subscribe but fail to pay premiums for over three months. The Ministry of Human Resources and Emiratisation (Mohre) warns of “administrative measures” if fines go unpaid, impacting new work permits. Fines can be deducted from salaries or end-of-service gratuity.
The Mohre app, website, or business service centers allow employees to check fines, pay in installments, and appeal within 15 working days. Over 6.6 million people have subscribed to the scheme.
The ultra-low-cost job security scheme compensates Emiratis and expatriates for up to three months if they lose their jobs. Private sector employees receiving work permits post-October 1 must subscribe within four months or face an AED 400 fine.
Certain groups are exempt, including investors, domestic workers, temporary employees, juveniles under the age of 18, citizens eligible for retirement, and retirees receiving a pension who have joined a new employer.
The scheme is divided into two categories based on salary. For those with a basic salary of AED 16,000 or below, the insurance premium is set at AED 5 per month (AED 60 annually), with a maximum monthly compensation of AED 10,000. The second category, covering those with a basic salary exceeding AED 16,000, has an insurance premium of AED 10 per month (AED 120 annually), with a capped monthly compensation of AED 20,000.
Employees can claim insurance compensation if subscribed for at least 12 consecutive months. However, they cannot claim compensation if they leave the country or secure a new job. The compensation is paid for a maximum of three months from the date of unemployment, provided the employee was not terminated for disciplinary reasons. The compensation amount is calculated at the rate of 60% of the average basic salary in the six months prior to unemployment.
