mandatory unemployment insurance, job loss insurance
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Dubai, UAE: The Ministry of Human Resources and Emiratisation (MoHRE) has extended the date of imposing fines on those who fail to register in the Unemployment Insurance Scheme until October 1, 2023 instead of July 1, 2023.

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The extension allows more time for employees to complete their registration, according to the Ministry.

This will allow more time for all employees covered by the Scheme — UAE nationals and residents — to complete their registration and benefit from the benefits it offers.

Responsibility of employee

Subscribing to the Unemployment Insurance Scheme is the responsibility of the employee, not the employer, and the fine for failing to subscribe within the deadline is set at Dh400.

4.6 million registrations
The Ministry revealed that over 4.6 million subscribers have registered in the scheme to date.

It stated: “The remarkable success that the Unemployment Insurance Scheme has achieved since it went into effect in January 2023 reflects the notable awareness among beneficiaries and members of the community as a whole about the advantages in terms of providing a social safety net, as well as enhancing quality of life for workers across the labour market.”

Coverage, exceptions

The scheme covers workers in the federal government and the private sector – citizens and residents – with the exception of investors (owners of the establishments where they work), domestic workers, temporary contract workers, juveniles under 18 years of age, and retirees who are earning a retirement pension and have started a new job.

3 months cash compensation

The scheme enables insured employees to obtain temporary cash compensation for a period of three months from the date of loss of employment, amounting to 60% of their average basic salary in the last six months preceding their termination for non-disciplinary reasons.

Subscription fee

The nominal subscription fee does not exceed Dh5 per month for workers earning basic monthly salaries of Dh16,000 or less — and Dh10 per month for workers earning basic salaries more than Dh16,000.

Workers have the right to subscribe to additional insurance benefits.

The Ministry called on employees who have not yet registered in the Scheme to visit the available subscription channels that allow them to easily register with a few simple steps.

How to subscribe

Subscription can be completed via Insurance Pool website (www.iloe.ae), its smart application iloe, Kiosks, ATMs, business service centres, exchange companies (such as Al Ansari Exchange), banking applications, telecom companies’ bills, and text messages.

Eligibility

To be eligible for the compensation, the insured must be registered in the scheme for a period of no less than 12 consecutive months and must submit an application requesting compensation within a period of 30 days from leaving work, provided that their employment was not terminated for disciplinary reasons, have not resigned, or the compensation request was not fraudulent.

Compensations payments will be suspended from the date the worker joins another job or leaves the country.