New insurance plan replacing bank guarantee is expected to bring down cost of hiring housemaids and other domestic workers, government officials said on Wednesday,Khaleej times reported.

Private companies in the UAE will soon be able to opt for a Dh60 insurance scheme to recruit workers instead of depositing Dh3,000 per worker as bank guarantee as is the practice now. The Ministry of Human Resources and Emiratisation will start implementing the low-cost insurance scheme from October 15.

It would also begin disbursing the bank guarantees that is worth Dh14 billion when companies opt for the insurance scheme. The reimbursement will not apply to companies that have committed salary-related violations six months before renewing work permits, ministry said.

The plan, which is in accordance with a Cabinet choice that was issued in June, will conceal to Dh20,000 per specialist. It covers laborers' finish of administration advantages, excursion and additional time recompenses, unpaid wages, return air tickets and work wounds.

It is gone for bringing down the expense of doing business in the nation.

inister of Human Resources and Emiratisation, Nasser Al Hamli said the new scheme will secure workers' rights and salaries. "The system will also reduce the financial burden on companies by lowering the cost of recruitment."

The ministry has signed an agreement with the Dubai Insurance Company, which will issue the policies electronically through a group of insurance firms.

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