compulsory health insurance uae Compulsory employment insurance in UAE effective from today; Three months’ compensation in case of job loss – uae started compulsory health insurance for labour

ABU DHABI: Taking insurance against loss of employment for employees working in the private sector and federal government departments has come into effect from January 1, 2023. In the event of loss of employment for any reason, the scheme provides a fixed percentage of the salary earned up to that point in the next three months as compensation. The Ministry of Human Resources and Emiratisation said that membership of this insurance scheme is mandatory for all government and private employees.

Who is excluded from the scheme?

Investors, business owners, self-employed people, domestic workers, temporary workers, people under 18, retired people in receipt of a pension, and those who have started employment under a new employer are exempt from compulsory insurance . The project is part of the Social Security Assistance Program announced by the United Arab Emirates government last May. The aim of the project is to ensure a decent living situation for the natives and expatriates during the period of job loss and to give an opportunity to look for a job with peace of mind.

How much should be paid as an insurance premium?

Employees with a basic salary of AED 16,000 or less must pay an insurance premium of AED 5 per month, or AED 60 per year. They will be entitled to compensation not exceeding 10,000 dirhams per month. Those whose basic salary is above Dh16,000 will be required to pay Dh10 per month, which is Dh120 per year. Those in this category will receive compensation not exceeding Dh20,000 per month. The employee may be allowed to include additional benefits in relation to the insurance company. Employees can pay premium on a monthly, quarterly, half-yearly and annual basis.

How to join the insurance scheme?

Employees can subscribe to insurance through the Insurance Pool website (www.iloe.ae), smart application, bank ATMs, kiosk machines, business service centers, money exchange companies, Doo, Etisalat and SMS. The scheme will be overseen by the Dubai Insurance Company, a representative of an insurance fund made up of nine companies. The monthly compensation will be 60 percent of the average salary for the 12 months immediately preceding the loss of employment. Compensation is only available for three consecutive months. It is also provided that during the insurance period, the total compensation received during the entire working life of the insured person in the UAE shall not exceed 12 monthly benefits. This means that a person who has lost their job at various times will be entitled to a total of 12 monthly compensations during their working life.