Workers insurance policy explained
Workers in Dubai in the Business Bay area of Dubai. Picture used for illustrative purposes only. Image Credit: Clint Egbert/Gulf News

Dubai: From October 1, a fine of Dh400 will be imposed on individuals who have not enrolled in the UAE’s Unemployment Insurance System.

The deadline for the UAE job loss insurance has officially closed and according to the Ministry of Human Resources and Emiratisation (MOHRE) the fine is applicable on workers in the federal government and private sector.

Apart from the penalty for not subscribing to the scheme, workers also need to ensure they do not delay the payment of the insurance instalments.

Here are the details of the fines and penalties that you should be aware of.

What is the mandatory Unemployment insurance scheme?

The Involuntary Loss of Employment (ILOE), also known as Unemployment Insurance Scheme, came into effect on January 1, 2023, and you can register for it through the official ILOE portal -

Depending on your salary, you just have to pay Dh5 or Dh10 per month to be eligible for the three-month compensation.

According to MOHRE, around 5.73 million employees enrolled since its inception on January 1 until September 25.


What are the fines and penalties?

The fines and penalties for not subscribing or complying with the ILOE policy are stipulated in Articles 9 and 10 of the Ministerial Resolution No. 604 of 2022 Concerning Unemployment Insurance Scheme, and are of two types:

1. Failure to subscribe to the scheme

If you do not subscribe to the Unemployment Insurance Scheme after the deadline you will face a Dh400 fine.

2. Failure to pay insurance instalments on time

If you have subscribed to the scheme but have not paid the premiums according to the selected payment frequency (monthly, quarterly, semi-annual or annual) for a period exceeding three months from the due date, the insurance certificate will be cancelled and a penalty of Dh200 will be imposed.

Not paying the fine? It might get deducted from your wages

Besides, stipulating the fines for not subscribing or paying the instalments, the ministerial resolution also highlights the penalties for ignoring the payment of the fines.

According to clause 4 of Article 9 of the resolution, an employee who fails to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System (WPS), or end-of-service gratuity.

No new work permit

If you do not pay all your fines you may be prevented from getting a new work permit, which will prevent you from joining a new job.

As per Article 10 of the resolution, if there are fines resulting from non-subscription or non-compliance with the ILOE scheme, the employee will not be eligible for a new work permit.

Article (10) - Refusal of Granting New Work Permits
It is mandatory that all due fines resulting from non-subscription or non-compliance with the payment of insurance premiums be paid within the prescribed periods in accordance with paragraph (2) of Article No. (97) of 2022 referred to above. If not, the employee will not be eligible for a new work permit until all due fines are paid within the specified timeframe.