UAE Unemployment Insurance Fines: Compliance Penalty Update 2025

MoHRE to Start Collecting Fines for Workers Failing to Comply with the Unemployment Insurance Scheme

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) has officially begun enforcing fines on workers who have not complied with the Unemployment Insurance Scheme. This marks a major compliance penalty update aimed at enhancing social protection and reinforcing the country’s labor market regulations.

What is the Unemployment Insurance Scheme?

Launched in January 2023, the scheme provides financial assistance to employees in the private and public sectors who lose their jobs due to circumstances beyond their control. It is mandatory for all UAE nationals and expatriates, with limited exceptions.

Key Unemployment Insurance Fines

• Non-registration fine: AED 400 for employees who fail to subscribe to the scheme by the deadline.

• Non-payment fine: AED 200 for missing contributions based on selected payment frequency.

These unemployment insurance fines are not merely punitive—they are designed to reinforce the importance of compliance and to ensure protection for all workers in times of job loss.

How to Comply and Avoid Penalties

MoHRE allows workers to pay fines through:

• The MoHRE smart app and website

• Authorized business service centers

Flexible installment plans are available to ease the financial burden. Non-compliant individuals may also face work permit restrictions.

Broader Compliance: Emiratisation and Private Sector Targets

This recent enforcement effort complements wider initiatives to ensure UAE labor law compliance. Notably, private sector companies must now meet Emiratisation quotas or face financial penalties. For a full breakdown of obligations and exceptions, read Private Sector Companies Must Meet Emiratisation Targets to Avoid Financial Contributions. The article explains how the government is holding employers accountable to support UAE national employment strategies.

Cross-Regional Labor Compliance

If your organization also operates across the GCC, you’ll find our Definitive Guide for Companies on Employing Expatriates in Saudi Arabia useful. It explores compliance mechanisms, onboarding procedures, and regional employment norms.

Final Thoughts

Navigating UAE’s labor ecosystem requires diligence and awareness. From unemployment insurance fines to Emiratisation metrics, staying proactive about legal obligations ensures both financial prudence and workforce stability.

Need expert help managing labor compliance in the UAE or GCC? Contact Halian for tailored consultation and end-to-end support.