Abu Dhabi: Unemployment scheme to be launched by 2023 to give vital protection to employees

The new unemployment support programme of the United Arab Emirates will serve as a "security blanket" for citizens and residents and is an evolved step that provides employees vital protection, say experts.

The new unemployment support programme of the United Arab Emirates will serve as a “security blanket” for citizens and residents and is an evolved step that provides employees vital protection, say experts.

The compulsory programme, set to be introduced next year in January, strives at Emirati and foreign employees working in both public and private sectors.

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Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, announced the new federal law on Thursday, 12 May.

The law states that every employee will pay in an insurance agency initiative. However, officials have not yet told how these contributions will be made and whether they will be paid through the employer directly or deducted from their salaries.

Yet, employees will be able to choose from different insurance packages provided by different organisations in the country.

Those who will lose their jobs will get 60% of their salary every month, up to Dh20,000, for a limited time to help individuals with living expenses.

If the unemployed individual doesn’t find any other job within a specific time, the financial support will end. The time for this has not been yet disclosed.

In the UAE, employees are paid a lump amount every month, but salaries are particularly broken down into ‘basic’, ‘housing’ and ‘transport’. The ‘basic wage’ earned by a worker is basically 50 to 65% of the total amount received.

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It is promising to learn that the scheme will act as a security blanket in the near future, providing strong protection to employees.

“The Emirates is proving once again that it has an ambitious idea for the future of its citizens and residents,” stated Mohamed Seghir, chief executive of Hayah Insurance Company.

“By launching such a scheme, the community’s economic resilience will be positively improved. Employees will feel secure about their future and hence more productive, contributing in return to an enhanced labour ecosystem.”

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