Dubai: Employees in the UAE will be able to subscribe to a form of social security if they have been terminated from their job once the new Unemployment Insurance Scheme comes into effect from January 1, 2023.
According to the Ministry of Human Resources and Emiratisation (MOHRE), the scheme will be available to federal government and private sector employees, and subscribing to the scheme is mandatory. Once you are eligible to receive compensation under the scheme, you will receive a salary of up to three months in case of job loss.
However, there are certain criteria that need to be met to ensure that you can take advantage of this social security system.
But how will your insurance coverage be calculated? And how can you subscribe to the scheme? Here is all you need to know.
Who can subscribe to the Unemployment Insurance Scheme?
The Unemployment Insurance Scheme applies to expats and Emiratis in the UAE's federal and private sectors. 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.
• Investors (owners of the establishments in which they work)
• Domestic helpers
• Part-time employees
• Juveniles under the age of 18
• Retirees who receive a retirement pension and have joined a new job.
12 consecutive months
the period of time you must complete in the previous job (calculated from the day you subscribed to the insurance scheme) to be eligible to receive compensation.
When are you entitled to receive a compensation?
You are entitled to receive a compensation under the scheme if you have suffered job loss due to reasons beyond your control.
When are you not entitled to receive a compensation?
According to MOHRE, there will be no compensation for workers:
• dismissed for a disciplinary reason.
• who have resigned from their job.
• who have left the UAE
• who have joined a new job.
How can I subscribe to the scheme?
You will be able to start subscribing to the scheme from January 1, 2023. Here are all the subscription channels you will be able to use, according to MOHRE:
1. Insurance Pool website - www.iloe.ae
2. Al Ansari Exchange
3. Kiosk machines
4. Telecommunication bill payment channels (through du and etisalat)
5. Insurance Pool smartphone application - 'iloe'
6. Bank ATMs and smartphone applications
7. Businessmen service centers
How is the insurance pay out calculated?
According to MOHRE, the insurance coverage compensation is calculated on a monthly basis at the rate of 60 per cent of the basic salary and the compensation salary is given for a maximum of three months from the date of unemployment.
The insurance scheme is divided into two categories:
• Employees who are earning a basic salary of Dh16,000 or less.
• Insurance cost: Dh5 per month (or Dh60 annually)
• Monthly compensation: 60 per cent of your basic salary, up to Dh10,000
• Employees earning Dh16,000 and above
• Insurance cost: Dh10 (or Dh120 annually)
• Monthly compensation: 60 per cent of your basic salary, up to Dh20,000
As per MOHRE, employees who work on a commission basis can also subscribe to the scheme.
While the insurance cost is Dh5 per month or Dh10 per month – depending on the category – the payment can be made by the employee monthly, quarterly, half-yearly, or on an annual basis. The value of the insurance policy is subject to value-added tax (VAT).
You can apply for claims under the insurance scheme through the website of ‘The Insurance Pool’ – dubins-wpp.ae or through the call centre – 800 382467.
‘The Insurance Pool’ is a group of UAE-based insurance companies and is managed by the Dubai Insurance Company. It was established in 2018 as the legal entity responsible for providing insurance coverage to workers insured under the UAE's Workers Protection Programme.
1. Dubai Insurance Company
2. Abu Dhabi National Insurance Company
3. Al Ain Ahlia Insurance Company
4. Emirates Insurance Company
5. National General Insurance Company
6. Orient Insurance
7. Abu Dhabi National Takaful Company
8. Oman Insurance Company
9. Orient UNB Takaful Company
How can I claim the insurance?
MOHRE has stated that the insured employee must submit the claim for the compensation within 30 days from the date of unemployment.
Maximum of 30 days
within which claims should be submitted after job loss.
Compensation will be paid within two weeks from the date of the claim and capped at a maximum of three months per claim.