Local media reported on Thursday that the United Arab Emirates has established an unemployment benefits scheme for workers in the commercial and public sectors.
The UAE Cabinet authorized a system to pay jobless benefits on Monday as part of the government’s bigger job security initiative.
The law is expected to take effect in 2023 and will apply to all employees, regardless of nationality.
Investors, domestic workers, temporary contract workers, retirees receiving a pension, those who have recently started a career, and those under the age of 18 are not eligible for the benefits.
According to local media, the money will be paid out in monthly cash installments, and the system will work like an insurance plan in which residents pay a set amount to the unemployment fund each year.
Employers who are laid off due to unforeseen circumstances would reportedly receive 60% of their wage, or up to $5,445 (AED 20,000), every month for a limited time, allowing them to keep a steady income.
Some stories claim that insurance will be required, although this has not been independently verified.
Existing insurance companies are anticipated to provide a selection of plans to eligible country residents.
The modifications are part of the UAE’s overall strategy to attract and retain talent. Dubai recently decriminalized alcohol drinking and permitted unmarried couples of opposing sexes to live together.