9 Million Workers in UAE Subscribe to Job Loss Insurance

The Ministry of Human Resources and Emiratisation (MoHRE) has reported that 9 million employees have enrolled in the Unemployment Insurance Scheme, which provides financial support to workers in the federal and private sectors during periods of unemployment.

 

Key Benefits of the Scheme

The Unemployment Insurance Scheme aims to safeguard employees’ standard of living by offering financial compensation for up to three months following job loss. This assistance is available to both Emiratis and residents, ensuring support until they secure alternative employment opportunities.

 

Subscription Process

Employees can subscribe to the scheme through various channels, including:

• The official website: www.iloe.ae

• The ILOE smart app

• Self-service kiosks, ATMs, and business service centers

• Currency exchange centers, mobile banking apps, SMS services, and telecom bills

• The insurance pool’s call center at 600599555

 

Subscription Fees and Coverage

The scheme is divided into two categories:

1. Category 1: For employees earning a basic salary of AED 16,000 or less.

   • Subscription fee: AED 5 per month (AED 60 annually)

   • Maximum monthly compensation: AED 10,000

2. Category 2: For employees earning a basic salary above AED 16,000.

   • Subscription fee: AED 10 per month (AED 120 annually)

   • Maximum monthly compensation: AED 20,000

Eligibility and Conditions

To qualify for compensation, subscribers must meet the following conditions:

• Maintain at least 12 consecutive months of subscription to the scheme.

• Avoid resignation or termination due to disciplinary actions.

• Compensation claims are invalid if the insured leaves the UAE or secures new employment.

Compensation, equating to 60% of the employee’s basic salary from the last six months before unemployment, is paid within two weeks of a valid claim.

 

Exemptions

The scheme excludes certain groups, such as:

• Investors and business owners

• Domestic workers

• Temporary contract workers

• Individuals under 18

• Retirees receiving pensions who have rejoined the workforce

 

Penalties and Waivers

Subscribers are required to adhere to the payment schedule for insurance premiums. Missing payments may result in penalties of AED 200 and policy cancellation. Non-subscribed employees can settle penalties via MoHRE’s digital platforms or business service centers, with options for instalment payments.

MoHRE also accepts requests for penalty waivers if supported by valid documentation, with decisions communicated within 15 working days.

With this scheme, the UAE aims to enhance financial stability for workers, providing a crucial safety net during employment transitions.

 

For any enquiries or information, contact info@thelawreporters.com or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels