The Unemployment Insurance System and the Mechanisms and Controls for its Implementation

Cabinet Decision No. 97 of 2022 was issued regarding the mechanisms and controls for implementing the unemployment insurance system, which was followed by Minister of Human Resources Decision No. 604 of 2022 regarding the unemployment insurance system, which clarifies what the insurance system is and the procedures that employees must follow in order to participate in it, as well as how to pay installments and fines, among other things.

-Awareness of the provisions of unemployment insurance:

1. The insurance service provider (insurance companies) must educate the employees covered by the insurance system about the system’s mechanisms for subscription and payment of insurance premiums, as well as the methods and conditions for receiving the insurance certificate.
2. All establishments and companies must motivate and direct their employees and workers to participate in the unemployment insurance system and commit to paying insurance premiums.

-The value of participation in the unemployment insurance system:

The value of the insurance premium is paid according to the value of the basic wage/salary in one of the following two categories:

1. The first category: Not more than (5) Five Dirhams per month, if the monthly basic wage/salary is (16,000) sixteen thousand dirhams or less.
2. The second category: Not more than (10) Ten Dirhams per month, if the monthly basic wage/salary is more than (16,000) Sixteen Thousand Dirhams.

Premiums can be paid on the basis of (monthly, quarterly, semi-annual, or annual) according to the desire and choice of the insured.

-Subscription channels and insurance premium payment:

1. The website of the unemployment insurance service provider.
2. The smart application for the unemployment insurance service provider.
3. The call center of the unemployment insurance service provider.
4. Businessmen service centers specified by the Ministry.
5. ATM devices and Qiosk devices, as specified by the Service Provider.
6. Exchange companies licensed in the country, as determined by the service provider.
7. Smart applications for banks operating in the country, as determined by the Service Provider.
8. Text messages (SMS) or the bill of the approved telecom companies in the country.

You can also register through the website of the insurance pool represented by Dubai Insurance Company via the following link:

https://www.iloe.ae/

– Not participating in the system or committing to paying insurance premiums:

1. A fine of (400) Dirhams shall be imposed on every worker/employee who fails to participate in the unemployment insurance scheme.
2. In the event that the insured does not comply with the payment of insurance premiums according to the periodicity of payment that he chose for a period exceeding (3) Months from the date of maturity of the insurance premium, the insurance certificate will be canceled and a fine of (200)Dirhams will be imposed on him.
3. The fines referred to above are paid through the website of the Ministry of Human Resources and Emiratization.

– Subscription deadline:

Existing employees: Every employee who did not comply with the unemployment insurance system and who is subject to the provisions of Decree-Law No. 13 of 2022 regarding insurance against unemployment, starting from the date of 06/30/2023.

Employees who were recruited or employed at a date later than 01/01/2023: They must register in the system within (4) months starting from the date of their entry into the State or from the date of modifying their status on the Establishment or from the date of final approval of the work permit by Ministry in cases that do not require a status adjustment.

For more details in this regard, please see the Ministerial Resolution below:

قرار وزاري رقم 604 لسنة 2022 بشأن نظام التأمين ضد التعطل عن العمل.pdf