UAE Will Deduct AED400 From Salaries of Uninsured Workers
The UAE will deduct fines for not subscribing to the mandatory Unemployment Insurance Scheme direct from the salaries or end-of-term gratuity of violators, said the Ministry of Human Resources and Emiratisation (MoHRE).
More than 6.6m people are subscribed to the UAE Unemployment Insurance Scheme as of November 15, the Ministry of Human Resources and Emiratisation (MoHRE) announced.
However, people not yet subscribed face fines of AED400 ($109) the ministry said, with further fines also lined up for people who fail to pay subscription fees.
The UAE’s MoHRE said: “The rising number of subscribers reflects the success of the scheme and the high awareness of the insured.”
The scheme, which came into effect on January 1, ensures a social protection for all workers, both citizens and residents, in the federal government and private sectors, as it provides three-month compensation amounts for the insured in the case of unemployment and until they find a job.
The deadline for enrolling in the Unemployment Insurance Scheme had expired in October, and non-subscribers are required pay a AED400 fine, in accordance with Cabinet Resolution 97 for 2022 on regulations and mechanisms of the Unemployment Insurance Scheme.
The rules also stipulate a AED200 fine facing subscribers who are not complied with paying scheduled subscription fees.
The Ministry announced in June 2023 the postponement of imposing fines on non-subscribers from July 1 to October1 to give more time to those included to subscribe.
It said: “Administrative measures will be taken against those who fail to pay fines, including not granting them new work permits until fines are paid, as well as deducting the fine amount from their salaries or end-of-service gratuities”.
Unsubscribed workers in the UAE can check the amount of the fines they have incurred and make payments through the MoHRE smart application, its website, or by visiting one of the authorised business service centres.
Digital channels also offer the option to submit requests to allow for fines to be paid in instalments, aiming to reduce burden on customers.
The Ministry accepts appeals for exemption from fines if all supporting documents are provided, and the decisions on appeals are made within 15 working days of submission through the MoHRE official channels.
The MoHRE said: “We call on subscribers to comply with the agreed upon payment schedule and pay their insurance fees on time.
“Non-payment on time results in a AED200 fine as well as the cancellation of the insurance policy.”
