Last Updated on: 28th June 2023, 08:01 am
More Than 60,000 People Apply For UAE Unemployment Insurance
Around 60,000 people in the United Arab Emirates (UAE) have joined the Involuntary Loss of Employment Insurance Scheme (ILOE) since it came into force on 1st January 2023.
UAE Government Regulations require public and private sector employees to enroll in the scheme, while domestic workers, contract workers, minors (under 18) and pensioners working anywhere are exempt.
Regarding new subscribers, the Ministry of Human Resources and Emiratisation of the United Arab Emirates (MoHRE) said that 86% of the 60,000 people who registered on the OITE website and 90% requested the annual payment plan instead of the monthly payment plan.
About The OIT
The ILOE insurance scheme, a social security initiative, was introduced this year, providing up to three months’ compensation to redundant workers in the United Arab Emirates.
Employees with a basic salary of less than AED 16,000 are required to pay AED 5 per month or AED 60 per year including Value Added Tax (VAT). If they are fired, they will receive 60% of their base salary for the next three months.
Meanwhile, employees whose salary exceeds AED 16,000 must pay AED 10 per month or AED 120 per year.
In addition, insurance must be maintained for 12 consecutive months to be eligible for job loss cash benefits.
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