Human Resources and Emiratization: Entities are not obligated to pay 'Unemployment Insurance' fees

The Ministry of Human Resources and Emiratization clarified that the subscription fees for the Unemployment Insurance system are borne by employees working in the private sector or in the federal government, both citizens and residents. Employers and facility owners are not obligated to pay the subscription costs for their employees.

• 7 Channels

The ministry pointed out in an informative publication that there are 7 channels for subscribing to the Unemployment Insurance system. These channels include the insurance consortium's website, represented by Dubai Insurance Company, the smart application of the insurance consortium, Al Ansari Exchange, self-service devices, as well as payment through telecommunications companies' bills and smart applications for banks and financial institutions, and business centers.

The ministry stated that the insured person must commit to paying the insurance installments according to the selected periodicity and through the designated subscription channels. In case the insured person fails to pay the insurance installments according to the payment periodicity chosen for a period exceeding 3 months from the due date of the insurance installment, the insurance certificate will be canceled, and a fine of 200 dirhams will be imposed. If the insured person does not pay the outstanding fines within 3 months from their due date, the value of the fine will be deducted from their salary through the Wage Protection System, or from their end-of-service gratuity, or any other alternative systems determined by the ministry.

• Payment of Installments

The insured person, who has a pending lawsuit registered with the judiciary, must also commit to subscribing to the Unemployment Insurance system and continue paying the insurance installments until cancelation of the worker's work permit and termination of the contractual relationship of the employee.

The ministry clarified that the Unemployment Insurance service provider must commit to educating those who meet the subscription conditions about the subscription mechanisms, paying the insurance installments, the methods and conditions of benefiting from the insurance certificate, through all awareness means determined by the ministry. Additionally, all facilities must encourage and guide their employees to subscribe to the Unemployment Insurance system and comply with paying the insurance installments.

It is worth mentioning that starting from June 30th, the Ministry of Human Resources and Emiratization will impose financial penalties on employees in both the government and private sectors who are not registered in the Unemployment Insurance system, in accordance with the provisions of the ministerial decision regarding the Unemployment Insurance system. The decision stipulates the necessity of enrolling all employees working in the private sector and employees in the federal government, both citizens and residents, in the Unemployment Insurance system before June 30th. After that, a fine of 400 dirhams will be imposed for each employee who does not enroll, if the deadline is not extended."

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