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 aims to provide financial support to employees in the private and public sectors who lose their jobs due to non-disciplinary reasons. The insurance ensures eligible workers receive a cash benefit for up to three months while seeking new employment.

Key coverage details include:

- Eligibility: All UAE nationals and expatriates in public and private sectors (with a few exceptions such as domestic workers, temporary contract holders, and under-18s).

- Coverage: Monthly compensation ranges between AED 5,000 and AED 20,000, depending on salary bracket.

- Subscription method: Workers can register through MoHRE’s smart app, the Involuntary Loss of Employment (ILOE) portal, or approved business service centers.

How to Comply and Avoid Penalties

Workers can register and pay fines through:

- MoHRE smart app or website
- In-person service centers
- Flexible installment options are also available for individuals with outstanding dues

Staying compliant ensures uninterrupted work permits and access to unemployment benefits when needed.

Broader Compliance: Emiratisation and Private Sector Targets

This move by MoHRE is part of a broader government campaign to enforce UAE labour laws and national employment priorities. Alongside insurance fines, companies that fail to meet Emiratisation quotas face escalating financial penalties ranging from AED 6,000 to AED 96,000 per unmet role per year.

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.

“With the enforcement of these penalties, compliance is no longer optional. It’s a strategic responsibility, We support our clients in understanding and navigating these frameworks to avoid penalties and strengthen their workforce strategy.”

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