14% Of UAE workers have not yet activated for job loss insurance
Approximately 14 percent of eligible employees in the UAE have yet to enroll in the unemployment insurance scheme, as reported by the Ministry of Human Resources and Emiratisation (MoHRE). The ministry emphasized that workers who do not subscribe to the scheme may face an AED 400 fine, and those who fail to pay their insurance premiums on time will be subject to a fine of AED 200.
The legal deadline for enrollment ended in October 2023, 10 months after the system's implementation on January 1. During this period, eligible workers had the opportunity to register and avoid financial penalties while accessing the system's benefits, according to the ministry's statement.
Workers are urged to settle fines promptly to prevent potential measures, such as the denial of new work permits. The fine amount will be deducted from the employee’s salary or end-of-service benefits. Payment of fines can be made through the MoHRE's smart application, website, or by visiting authorized business service centers.
To date, more than 6.7 million employees, including citizens and residents working in the federal government and the private sector, have registered in the scheme. Exemptions from subscription apply to investors (business owners managing their establishments), domestic workers, employees with temporary work permits, juveniles under 18, and retirees receiving pensions who have joined a new employer.
