UAE unemployment insurance: Apply before October 1 or face fines

The United Arab Emirates (UAE) has introduced an unemployment insurance scheme for all employees in the country. The scheme is mandatory and those who have not signed up before the Sunday, October 1, deadline will face a fine of Dirhams 400 (Rs 9,050).

The scheme applies to all employees in the Emirates, including free zone and semi-government workers.

Officially called the Involuntary Loss of Employment Insurance (ILOE) scheme, which came into effect on January 1, 2023, seeks to provide financial security to residents in the event they lose their jobs for reasons other than disciplinary action or resignation.

5,534,027 employees have signed up for the unemployment insurance scheme so far.

Benefits

Those covered by unemployment insurance can receive up to 60 percent of their average base salary if they lose their jobs. Cash benefits are provided for a maximum of three consecutive months for each claim.

However, in order to file a claim, the employee must have been paid the wages for at least 12 consecutive months. Proof of involuntary unemployment must be submitted within 30 days.

Here are the fines and penalties

• Dirhams 400 (Rs 9,050)— For employees who fail to subscribe to the scheme before September 30.

• Dirhams 200 (Rs 4,525)— For failing to pay premiums for more than three months from the due date.

• Dirhams 20,000 (Rs 4,52,518)— For employers who cooperate with the insured to receive unemployment insurance benefits.

Register on ILOE or BOTIM websites

ILOE

• 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 the registration successfully.

BOTIM

• Select ILOE insurance on the explore page on the app

• Input Emirates ID details and a valid email address which will then auto-select the relevant category based on registered employment information

• Make the payment

Who is exempt from the scheme?

• Investors (owners of companies they work at)

• Domestic helpers

• Temporary contract workers

• Juveniles under the age of 18

• Retirees who are entitled to a pension and joined a new job