Dh400 Fine Awaits Employees Who Fail to Sign Up for UAE Unemployment Insurance Plan

Involuntary Loss of Employment subscription: Here’s what you need to know

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Pavitra Shetty

Published on June 24, 2024, 08:49:47


uae unemployement insurance plan

Did you receive a text message asking you to renew your ILOE (Involuntary Loss of Employment) subscription? If you were among the first employees in the UAE to enrol in the unemployment insurance scheme, which commenced on January 1, 2023, and opted for an annual subscription, you might have already received a renewal notification. Early subscribers are now being reminded via text messages to renew their policies.

According to the Ministry of Human Resources and Emiratisation (MoHRE), over 6.7 million UAE residents have subscribed to the scheme since it took effect. The deadline to enrol ended on October 1.

A Dh400 fine was imposed on workers who failed to sign up. A Dh200 fine applies to subscribers who fail to pay the premiums for more than three months. Employees whose work permits were issued after October 1, 2023 must subscribe to the scheme within four months, failing which they face a Dh400 fine.

Employees who fail to pay their fines within three months from the due date will have the amount deducted from their wages or end-of-service gratuity. New work permits will not be issued until the fines are cleared. 

Emiratis and expatriates working in the federal government and private sectors are required to subscribe to the scheme. Exempted categories include investors, domestic helpers, temporary contract workers, juveniles and retirees who are entitled to a pension.

The ultra-low-cost scheme is divided into two categories:

  • The first covers those with a basic salary of Dh16,000 or below, with an insurance premium set at Dh5 per month (Dh60 annually). The maximum monthly compensation is Dh10,000.
  • The second covers those with a basic salary exceeding Dh16,000, with an insurance premium of Dh10 per month (Dh120 annually). The monthly compensation for this category is capped at Dh20,000.
    The compensation is paid for a maximum of three months from the date of unemployment, provided the employee was not terminated for disciplinary reasons. The amount is calculated at 60 per cent of the average basic salary in the six months before unemployment.

Steps to Renew Your ILOE Subscription

  • Visit the ILOE Website
  • Go to iloe.ae.
  • Click on the ‘Subscribe/Renew here’ option on the homepage.

Subscription Information

  • A pop-up box will appear with details about who can subscribe to the scheme.
  • Click on the ‘Subscribe here’ button.

Select Your Sector

  • You will be redirected to a page with several options.
  • Under the ‘Individual’ option, select your sector: private, federal government, or unregistered under MoHRE.

Enter Your Details

  • Provide your Emirates ID and mobile number.
  • Click on ‘Request OTP’ (One-Time Password).
  • Enter the OTP received via SMS and click ‘Submit’.

Access Your Dashboard

  • You will be taken to your dashboard on the ILOE website.
  • Here, you can view details such as your insurance number, policy start and expiry dates, insurance category and last installment paid.

Renew Your Policy

  • On the right side of the screen, you will see a breakdown of your previous payments and the option to renew.
  • Click on the ‘Pay Now’ button.

Make a Payment

  • You will be directed to a payment gateway.
  • Enter your credit or debit card details and click on the ‘Pay’ button.
  • After a few seconds, you will be redirected back to the ILOE website and receive a notification confirming your payment was successful.

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