unemployment insurance scheme

UAE introduces unemployment insurance schemes

The Federal Decree-Law No. 13 of 2022 is related to unemployment insurance. The insurance scheme aims to provide financial support to employees terminated by their employers under the Federal Decree-Law No.

Workers who have paid a monthly premium for their insurance will receive financial assistance. Employers are not required to purchase this insurance. The insurance plan is open to employees. As of January 1, st 2023 has become a mandatory requirement for all employees.

Why introduce this scheme?

The unemployment insurance scheme’s primary purpose is to provide income security and protection for workers for a short period. It provides social protection for workers to help them enjoy a decent life during unemployment.

It also aims to increase the competitiveness and productivity of Emiratis in the labor market.

What is the scope of the scheme?

The scheme will apply to all workers, federal and private, except:

  • Business owners and investors who manage their businesses
  • Domestic workers
  • Temporary contracts for employees
  • Employers under 18 years of age
  • Retirees receiving pensions who have switched employers

Is registration mandatory?

The Ministry of Human Resources and Emiratisation will require that you purchase an insurance policy to protect against job loss starting January 1, 2023.

Employees of federal departments and private companies can subscribe to the Unemployment insurance Scheme for as low as AED 5/Month.

Available Schemes, Premiums & Eligibility

The employee will receive 60% of their basic salary. A maximum monthly amount of AED 20,000 is allowed. The employee will receive the amount within three months of losing their job or until they find a new job.

Basic Salary



AED 16,000 or less

AED 5/Month or AED 60/Annum

AED 10,000 per month is the limit

Exceeding AED 16,000

AED 10/Month or AED 120/Annum

AED 20,000 per month is the limit

The worker must have paid the monthly Premium for at least 12 consecutive months and should have received the payments on time to be eligible for the Compensation.

Resignation is not the reason for unemployment. The insurance plan is not for employees who have been terminated. A worker fired for any reason other than disciplinary reasons will automatically be deemed ineligible.

The claim must be submitted within 30 days of the termination date.

Insurance scheme providers

According to the Ministry of Human Resources & Emiratization, the scheme will be offered by Dubai-based insurance companies such as:

  • Dubai Insurance Company
  • Abu Dhabi National Insurance Company
  • Al Ain Ahlia Insurance Company
  • Orient UNB Takaful Company
  • Oman Insurance Company
  • Abu Dhabi National Takaful Company
  • Orient Insurance
  • National General Insurance Company
  • Emirates Insurance Company
  • Al Ain Ahlia Insurance Company

These are the subscription channels:

  • SMS
  • Du & Etisalat
  • Exchange companies
  • Business Service Centres
  • Bank ATM & Kiosk Machines
  • Website of the Insurance Pool (www.iloe.ae) and Smart Application

Suspension from The Scheme

The following scenarios could result in an insured worker losing eligibility for Compensation:

  • The Federal Decree-Law No. 33 of 2021 Concerning the Regulation of Employment Relationship and its Amendments. 33 of 2021 Concerning the Regulation of Employment Relationship, its Amendments, and the Federal Human Resources Law
  • Participation in fraudulent behavior during the claim
  • They work in a fictional place.