How to Manage Finances after Job Loss UAE

Assess Your Financial Situation

The first step of financial planning after a job loss in UAE is to —

• Get a clear picture of finances — Pause, reflect, and calculate.
• List all the necessary monthly expenses. This includes your rent, school fees, transportation, groceries, insurance, and utilities. 
• Identify areas where you can reduce spending.
• Avoid impulsive spending, particularly during stress. We get it — shopping therapy can boost your mood, which seems quite appealing in such unfortunate scenarios. This, however, can actually worsen your financial difficulties.

Rather, create a SURVIVAL BUDGET that focuses on essentials before you secure another job.

Protect Your Home and Basic Needs

The next step to manage your finances after job loss UAE is to handle your housing expenses. Here’s what you can do for this —

• Review your tenancy agreement carefully.
• Communicate with the landlord if you find it tough to pay the rent.
• If you have company-provided housing, inform your move-out timeline once you receive your final settlement.
• Make sure you have a health insurance policy in place for you and your family. This way, at least your family can continue to receive healthcare services without worrying about finances. 

Did You Subscribe to ILOE on Time?

Dubai has made it compulsory for people in public and private sectors across the UAE to subscribe to the Involuntary Loss of Employment scheme. It offers financial support for unemployed people in the following manner —

• For Category A members (monthly salary up to AED 16,000), the maximum monthly compensation is AED 10,000.
• For Category B members (monthly salary above AED 16,000), the maximum monthly compensation is AED 20,000.

You can get compensation for up to 3 months per claim.

Make the Most of Your Income Protection Insurance

If you lose your job for a reason beyond your control, you can receive up to 80% of your monthly salary for up to 3 months with an income protection insurance policy. This way, you can get compensation to manage your finances after job loss in UAE. 

In addition to job loss cover, some policies also offer hospital cash benefit and accidental death benefit. 

To Conclude

Managing finances after job loss in the UAE requires careful planning and proactive measures. Assess your financial situation, create a survival budget, and explore available support options. You can manage your needs during this tough time. Use income protection insurance compensation and ensure you are subscribed to the Involuntary Loss of Employment scheme for financial assistance.