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AED 400 will be Deducted from Salary for not Subscribing to Unemployment Insurance Scheme

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Pavitra Shetty

Published on November 16, 2023, 09:39:14

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unemployment insurance scheme

More than 6.6 million people have enrolled in the unemployment insurance scheme which offers job security to employees for up to 3 months. The scheme was introduced on January 1, 2023. 

The Ministry of Human Resources and Emiratization (MoHRE) issued a warning, stating that failure to pay fines could result in the denial of work permits and possible deductions from salary or end-of-gratuity benefits.

Employees who fail to register for the insurance by the October 1 deadline will be fined AED 400. A fine of AED 200 is imposed on those who have registered but haven't paid their premiums in more than three months.

The MoHRE app, website, or business service centres can be used to check or pay fines. Installment plans are available for payment, and appeals against penalties will be handled promptly—within 15 working days. Employees in private sector companies who obtained work permits after October 1, must join in the program within four months. A fine of AED 400 will be imposed for non-compliance.

Self-employed people who run their businesses, domestic helpers, temporary employees, minors under the age of 18, pension-eligible retirees, and retirees who have taken a new job are not required to register for the scheme.

Employees must maintain a continuous subscription for at least 12 months to be eligible for insurance payments. If they decide to leave the nation or find employment elsewhere, they will not be entitled to compensation. If the termination was for disciplinary reasons, employees aren’t entitled to receive the compensation.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

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