9 million subscribe to job loss insurance in UAE

Abu Dhabi: The Ministry of Human Resources and Emiratisation (MoHRE) has announced that 9 million workers have so far subscribed to the Unemployment Insurance Scheme.

In an update on its official digital platforms, the ministry stated: “The Unemployment Insurance Scheme provides a social protection umbrella, ensuring a decent standard of living for employees in the federal government and private sectors, both Emiratis and residents, during periods of unemployment. This is achieved through financial compensation for up to three months in the event of job loss, until an alternative employment opportunity is found.”

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MoHRE urged those eligible for the scheme to expedite their subscription to benefit from its advantages. It also encouraged employers to motivate and support their employees in subscribing to the system.

Registration channels

Multiple registration channels are available, including the insurance pool’s official website (www.iloe.ae), the ILOE smart app, self-service kiosks, ATMs, business service centres, currency exchange centres, mobile banking applications, SMS services, telecom bills, or through the insurance pool’s call centre at 600599555.

Commitment to payment

The ministry also called on subscribers to adhere to the agreed payment schedule of insurance premiums. It warned that failure to pay premiums could result in a financial penalty of Dh200 and the cancellation of the insurance policy.

Exemptions

MoHRE clarified that certain categories are exempt from the scheme, including investors (owners of the establishments they work for), domestic workers, temporary contract workers, individuals under the age of 18, UAE nationals eligible for retirement, and retirees receiving pensions who have taken on new employment.

Coverage categories and fees

Category 1: For employees with a basic salary of Dh16,000 or less. The subscription fee for this category is Dh5 per month (or Dh60 annually), with a maximum monthly compensation limit of Dh10,000.

Category 2: For employees with a basic salary exceeding Dh16,000. The subscription fee for this category is Dh10 per month (or Dh120 annually), with a maximum monthly compensation limit of Dh20,000.

Conditions for compensation

Eligibility for compensation requires a minimum of 12 consecutive months of subscription to the scheme. The right to claim compensation is forfeited if the insured leaves the UAE or secures new employment. Compensation is disbursed within a maximum of two weeks from the date of a valid claim that meets all eligibility criteria.

The scheme compensates the insured with cash payments for up to three months, provided they have not resigned or been terminated for disciplinary reasons. The compensation amount equals 60% of the employee’s basic salary from the last six months prior to unemployment.

Penalties

Non-subscribed employees can review and settle penalty amounts via the ministry’s smart app, website, or accredited business service centers. Digital platforms also allow users to submit instalment requests for outstanding penalties to ease their financial burden.

Additionally, the ministry accepts requests for penalty waivers if supported by valid documentation. Applicants are notified of the decision within 15 working days via official ministry channels.