Over 6.5 million employees subscribe for job-loss insurance in UAE

Dubai: Over 6.5 million employees have subscribed to the Unemployment Insurance Scheme from January 1 (starting date for registration) to October 1, the Ministry of Human Resources and Emiratisation (MoHRE) announced today.

With a Dh400 fine to be imposed on workers who did not enrol themselves in the Scheme, the Ministry said workers can know if the fine was imposed on them via MoHRE’s app, website or Business Service Centres.

The scheme covers citizens and residents working in the private and federal government sector, excluding investors (business owners who own and manage their establishments), domestic workers, temporary employees, minors under the age of 18, and retirees who receive pension and have joined a new employer.

The Ministry commended those who have enrolled in the Scheme, stating: “This signals their commitment to complying with Federal Decree-Law No. 13 of 2022 on Unemployment Insurance Scheme, and underlines their awareness of the benefits the system provides, which include a social safety net for citizens and residents, ensuring a decent life for them and their families until alternative employment opportunities arise. Additionally, the scheme aims to attract and retain top global talent to the UAE labour market.”

MoHRE urged those eligible for the system to register, noting that while the option has been provided for employers to register their employees in the system, it is ultimately the employee’s responsibility to enrol, not the employer’s, who incurs no additional costs.

How to subscribe

Subscription can be completed by visiting the Insurance Pool website (www.iloe.ae), the ILOE smartphone application, designated physical kiosks, business service centres, select money exchange companies, and banks’ smartphone applications.

The Unemployment Insurance Scheme is divided into two categories: the first covering those with a basic salary of Dh16,000 or less, where the insurance premium for the insured employee in this category is set at Dh5 per month (Dh60 annually), and the maximum monthly compensation is set at Dh10,000.

Meanwhile, the second category includes those with a basic salary exceeding Dh16,000, where the insurance premium is Dh10 per month (Dh120 annually). The monthly compensation for this category is capped at Dh20,000.

The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The insured’s right to compensation is not eligible if he or she cancels their residency and leaves the country or joins a new job, within the processing period. The claim will be processed within two weeks of submission.

The compensation is paid for a maximum of three months from the date of unemployment for each claim, provided the employee in question was not terminated for disciplinary reasons, and has not voluntarily resigned.

The amount is calculated at the rate of 60 per cent of the average basic salary in the last six months before unemployment.