The United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation has issued a stern warning to workers who have failed to register for the unemployment insurance scheme by the deadline.
The Gulf state, which is known for its strict visa requirements, has said that those who miss the registration deadline could face difficulties in renewing their visas.
Financial penalties
The ministry announced that administrative measures are now in place, including the imposition of financial penalties to be deducted from the salaries or end-of-service benefits of non-compliant employees.
Individuals who fail to register by the deadline will be fined AED 400, with an additional penalty of 200 dirhams for late payment of insurance premiums within 90 days.
Visa renewal hurdles
Underscoring the seriousness of non-compliance, the emirate said that failure to settle outstanding dues will result in the denial of new work permits for those affected.
Since its launch in January this year, the social security scheme has gained significant traction, with more than 6.6 million people registered under the programme.
Designed to provide a vital safety net for both public and private sector workers in the event of job loss, the scheme has played a pivotal role in securing the financial well-being of workers.
Exemptions and enrolment process
It is important to note that the social programme is not mandatory for those working in free zones. However, individuals newly arriving in the UAE for employment purposes have a 120-day window to register for the unemployment insurance scheme.
The Ministry attributes the success of the scheme to the high level of awareness among the insured population and the significant number of subscribers.
