January 02, 2023

UAE Unemployment Insurance: Everything You Need to Know

Career
By Kinetic 0 Comments
UAE unemployment insurance, job seeker, job loss, dubai, kinetic, recruitment, uae, ILOE

If you’re a private or public sector employee in the UAE, you can now sign up for the country’s Unemployment Insurance Scheme.

The Ministry of Human Resources and Emiratisation launched the Involuntary Loss of Employment (ILOE) scheme on 1st January and those who lose their job can receive 60% of their basic salary for a period of up to three months.

Who is eligible?

All public and private sector employees are required to sign up for the scheme by 30th June 2023 – Employees working in the UAE’s free zones and semi-government entities can also subscribe to the scheme under “Non-Registered in MOHRE” in the ILOE portal.

How much does it cost?

Depending on your basic salary, you will be required to pay Dh5 or Dh10 per month:

Category A: Basic salary of Dh16,000 or less.

  • Cost: Dh5 per month or Dh60 annually.
  • Monthly compensation: 60% of your basic salary, up to Dh10,000.

Category B: Basic salary of Dh16,000 and above.

  • Cost: Dh10 or Dh120 annually.
  • Monthly compensation: 60% of your basic salary, up to Dh20,000.

How you can enroll:

  • The Insurance Pool website or app – iloe.ae
  • Al Ansari Exchange
  • Telecommunication bill payment channels (du and Etisalat)
  • Bank ATMs and applications
  • Businessmen service centers

How to claim:

  • To be eligible to receive compensation under the insurance scheme, you must complete a minimum of 12 consecutive months in your previous job, calculated from the day you subscribed to the insurance scheme.
  • Insured employees must submit their unemployment insurance scheme claim within 30 days from their termination date through three approved claim channels: the insurance pool’s e-portal, smart application and call centre.
  • You will need to provide the following documents with your claim:
    • The dismissal document indicating the date and reason for Unemployment.
    • A copy of the final judicial ruling in the event of a labour lawsuit between the Worker and the Employer.
  • Insured employees are not eligible for the payment if they have left the country or have started a new job.

Important things to note:

  • The deadline to subscribe is 30th June 2023. If you fail to subscribe to the scheme once the deadline has passed, a fine of Dh400 will be imposed (unless the deadline is extended).
  • If you register but fail to pay contributions for three consecutive months, you will lose the benefits under the scheme and be required to re-subscribe, pay any unpaid contributions, plus a fine of Dh200.
  • Employers are not required to register their employees in an insurance scheme, nor are they required to pay any contributions to the scheme.

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