The Unemployment Insurance Scheme is set to come into effect on 1 January 2023.
As previously announced by the Ministry of Human Resources and Emiratisation (MoHRE), all public and private employees must be subscribed to the scheme.
The scheme aims to protect employees that have been terminated by ensuring they receive a three-month compensation.
Employees can choose between two plans, with the first category targeting individuals receiving a salary lower than Dhs 16,000, where the insurance cost is Dhs 5 per month, and the compensation not exceeding Dhs 10,000.
The second category is for employees with a salary exceeding Dhs 16,000, who are eligible for compensation up to Dhs 20,000, with a cost of Dhs 10 per month.
Payments can be made on a monthly, quarterly, half-yearly or annual basis, with subscriptions applied and paid through SMS, bank ATMs and kiosk machines, the insurance pools' website and application, business service centres, money exchange companies and du and Etisalat.
Investors and owners of companies worked at, domestic helpers, employees with temporary contracts, juveniles 18 years and under, and people that have retired and received a retirement pension and have joined a new job are exempt from the scheme.