There is just less than 12 hours for employees in the United Arab Emirates (UAE) to subscribe to the unemployment insurance scheme, or they will have to pay a fine of 400 dirhams (9,058).
It is mandatory for all employees across the country, including Freezone and federal government workers to sign up for the scheme.
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.
From Sunday, October 1, heavy fines will be imposed on those who do not comply with the law – including those who do not sign up. Unpaid fines will be deducted from the employee’s salary or end-of-service benefits.
If you do not pay all of your fines, you may be denied a new work permit, which will prevent you from joining a new job.
Who are exempted 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
How to apply for unemployment insurance?
The insurance will be made available through various platforms,
- ILOE 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).
Know more about the UAE unemployment insurance scheme
Eligible employees may receive a monthly cash bonus of up to 60 percent of their average base salary during the six months prior to losing their jobs.
The UAE Ministry of Human Resources and Emiratisation (MoHRE) revealed that more than 5.7 million subscribers have registered for the scheme so far.
