Why the unemployment pay scheme is a vital safety net

Pocketful of Dirhams

The UAE’s Unemployment Insurance Scheme took effect earlier this month, giving all Emirati and foreign employees in the country a vital cash safety net if they lose their job. The mandatory social security support system is based on 60 per cent of an employee’s basic salary and is capped at a maximum of three months, the Ministry of Human Resources and Emiratisation said. While the finer details have yet to be announced, financial experts have welcomed the move but say it is imperative that people also set up an emergency savings fund, rather than rely solely on the unemployment benefits. Host Felicity Glover is joined by Keren Bobker, an independent financial adviser and senior partner with Holborn Assets, to discuss the benefits of the social security scheme.