The enrollment deadline for the mandatory unemployment insurance scheme in the UAE is approaching, with June 30, 2023, being the last day to sign up or potentially incur fines.
Have you registered for UAE unemployment insurance yet? Here everything you need to know. The Involuntary Loss of Employment (ILOE) Scheme serves as a social security measure, providing workers with up to three months of compensation in the event of job loss.
As per the Dubai Insurance website, this scheme is applicable to both Emirati and foreign workers in the private and public sectors, including employees in free zones who can register under "Non-Registered in MOHRE."
The ILOE scheme became effective on Sunday, January 1, 2023, and a grace period of six months has been provided, allowing individuals to subscribe until Friday, June 30, 2023.
What happens if you fail to enroll? According to Cabinet Resolution No. 97 of 2022, UAE employees who do not subscribe to the UAE unemployment insurance within the grace period will be subject to fines imposed by the Ministry. A fine of Dhs400 is applicable, and an additional fine of Dhs200 is levied if the insured individual fails to pay the prescribed insurance premiums for more than three months.
How much does the UAE Unemployment Insurance scheme cost? Category A: Workers with a basic salary of Dhs16,000 or less are required to pay a monthly insurance premium of Dhs5, which amounts to Dhs60 annually.
Category B: Those with a basic salary exceeding Dhs16,000 must pay Dhs10 per month, equivalent to Dhs120 annually.
Employees can choose to pay the premium on a monthly, quarterly, half-yearly, or annual basis. It important to note that to be eligible for benefits, employees must pay the monthly premium consistently for a minimum of 12 consecutive months.
How much compensation can you expect? Compensation is calculated based on the individual salary and is paid for a maximum of three months from the date of unemployment.
The compensation amount is determined as up to 60% of the employee salary. For instance:
Category A: Maximum claim benefits amount to Dhs10,000 per month.
Category B: Maximum claim benefits amount to Dhs20,000 per month.
Here's how you can apply for the ILOE scheme: All eligible employees can subscribe through various channels, including the Dubai Insurance website portal, or by visiting their nearest Al Ansari Exchange or government business centers (Tawjeeh or Tasheel). Ensure you have your Emirates ID number and UAE mobile number readily available.
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