Being made redundant, your company closing or just simply being fired is everyone’s worst nightmare. A few private insurance options have been available either through your bank or independent broker but nothing in terms of government backed programmes until now …
First and foremost this scheme is only for mainland companies, if you are working for a company in a freezone area it does not apply to you and its better to seek private loss of employment options either through your bank or an insurance broker
If you are working for a mainland company the involuntary loss of employment came into effect on Sunday January. It is in a way a type of social welfare fund that will give workers a maximum of 3 months compensation if they lose their employment
To qualify you need to be working in the public or private sector. If you work in a free zone then this does not apply to you. There is a time limit to apply and be registered for 6 months. If you fail to register inside of the 6 months you will have a fine imposed on you costing 400 AED.
The cost then ranges based on your salary. Those with a salary of 16,000 AED or less will pay 5 AED monthly. Above 16,000 AED you will need to pay 10 AED per month. Plenty of payment options are available but when it is so low it should be noticeable to anyone. One condition that all should bear in mind is that 12 months must be paid first to make a claim
In terms of compensation is based on your salary and can be up to to 60%
Head over to the Dubai Insurance website portal or Al Ansari Exchange or any government business centre with your Emirates ID UAE phone number with you.