News & Events
The UAE Govt has come up with a social security program set to be implemented from 1st January 2023. The Ministry of Human Resources and Emiratisation put forward a statement after signing the agreement with nine local insurance companies. All the Federal Govt and Private Sector employees must be subscribed to this social security program.
For an employee who earns a salary of Dh.16,000 and less per month, the insurance cost is set at Dh.5 per month or an annual amount of Dh.60
For employees earning a salary of Dh.16,000 or more per month, the insurance cost is set at Dh.10 per month or Dh.120 per year.
For those who are unemployed, the payment would be made by the employees monthly, quarterly, mid-year, or yearly, and the value of the insurance is subject to the Value Added Tax(VAT).
For the first set of employees, the insurance spend will be within Dh.10,000 monthly and for the second set of employees, the insurance spend will be calculated as 60 percent of the basic salary.
When an insured employee loses their job, they have 30 days from the date of unemployment to file a claim through one of three authorized channels: the insurance pool's e-portal, smart application, or call center. Payments must be made within two weeks of the claim date and limited to a three-month maximum per claim. Employees who have been employed and paid into the insurance program for at least 12 months are eligible for the unemployment payout, provided they haven't been fired for misconduct or quit their position. Additionally, if the covered employees have moved to a different location or started new employment, they are no longer eligible for the payment.
The insurance scheme will not provide coverage for investors, including those who own the businesses where they work, domestic assistants, part-time employees, those who are under the age of 18, and pensioners who get a pension but have started new employment.According to the ministry, there are several options for individuals to enroll in the insurance program, including the insurance pool's website, smart application, bank ATMs, kiosk machines, business service centers, money exchange firms, du and Etisalat, or through SMS.