UAE unemployment insurance: Apply before June 30 or face fines

Abu Dhabi: The United Arab Emirates (UAE) unemployment insurance scheme was introduced in the country in January and is mandatory for all workers, including those in free zones and semi-government entities.

The deadline to apply for the insurance ends on June 30.

Those who do not subscribe to the unemployment insurance scheme will face a fine of Dirhams 400 (Rs 8,961).

A fine of Dirhams 200 (Rs 4,481) will be levied on missing instalment premium payments.

What is the unemployment insurance scheme?

In May 2022, the Ministry of Human Resources and Emiratisation announced a new federal law covering the plan.

The system would ensure the sustainability of a decent life for citizens and residents during their unemployment period and would reduce work risks.

On November 2, the ministry signed an agreement with nine insurance companies that would set a framework for the unemployment insurance plan and released more details about the program, including the cost that employees will pay for it.

How does it work?

The compensation will be paid for a maximum period of three months from the date the employee lost the job and will be calculated at 60 percent of his basic salary with a maximum of Dirhams 20,000 (Rs 4,48,041) per month.

Is it mandatory for everyone working in the UAE?

No, it is not. The insurance program does not cover investors, such as business owners, home workers, part-time employees, workers under 18, and retirees who receive a pension who have joined a new job.

When to claim?

The claim must be made within 30 days from the date of unemployment.

The compensation will be eligible if employees work and subscribe to the scheme for at least 12 months. The employee must also not have been dismissed for a disciplinary reason or have resigned.

Employees who leave the country are not eligible to receive the benefit.

Subscription fees and compensation

First category

• Basic salary of Dirhams 16,000 (Rs 3,58,433) and less

• The insurance cost: Dirhams 5 (Rs 115) per month

• Monthly compensation will not exceed 10,000 (Rs 2,24,007)

Second category

• Basic salary exceeding Dirhams 16,000

• The insurance cost: Dirhams 10 (Rs 224) per month

• Monthly compensation will not exceed Dirhams 20,000

Here is how to apply for unemployment insurance

The insurance will be made available through various platforms

• Involuntary Loss of Employment (ILOE) insurance website and its smart application

• Bank ATMs and Kiosk machines

• Business service centres

• Money exchange companies

• du and Etisalat

• SMS

• Other channels that MOHRE specifies with the service provider (insurance company).

Register on ILOE website

• Visit the website

• Click on “subscribe here” to access the registration page

• Select the appropriate sector you are employed in; enter your personal identification data, phone number and verification code sent via SMS; choose your preferred payment interval (monthly, quarterly, semi-annual or annual); enter your email address

• Go to the payment gateway to complete registration successfully.