UAE launches job security initiatives - Beacon

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Sunday, October 30, 2022

UAE launches job security initiatives

wages protection system

Employees in the UAE’s government and private sector can opt in for an unemployment insurance scheme that came into force on Tuesday.

The move allows insured individuals to claim a specific cash amount for a limited period if they lose their employment, the country’s Ministry of Human Resources and Emiratization (MoHRE) announced on Thursday.

The compensation will be paid monthly, calculated at 60 percent of the employee’s subscription salary and subject to a maximum of $5,450 (AED 20,000) per month, for no more than three months from the date of unemployment.

The system is expected to provide stability and sustain an individual’s standard of living until another employment is found. The system functions like an insurance package where residents pay forward a certain sum every year to the unemployment fund.

The Nafis initiative also offers several other benefits including the Emirati Salary Support Scheme, wherein the UAE nationals would be offered one-year salary support up to Dh8000 per month during training and monthly support of Dh.5000 would be paid up for up to five years for university graduates.

The program offers UAE nationals specialized in fields such as nurses, coders and accountants with a top-up on their existing salaries.

The program also offers subsidized five-year government-paid contribution on company’s behalf against the cost of pension plans for Emirati staff and full support for the Emirati’s contribution across the first five years of their employment.

The UAE cabinet approved the scheme to provide unemployment benefits as part of a larger job security initiative launched by the government.

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