Last Updated on: 24th July 2023, 10:36 am
Unemployment Insurance Scheme UAE Apply Online 2023
The United Arab Emirates (UAE) has made enrollment in the Unemployment Insurance Scheme mandatory for all Emirati and foreign workers in the public and private sectors from 1st January 2023. This also applies to workers in free zones.
Involuntary Loss of Employment Insurance (ILOE) is a form of social security that was introduced in May last year. It serves as financial security for Emiratis and residents who lose their jobs. Under this scheme, if an individual’s employment is terminated by their employer, they will receive a cash payment for three months.
To be eligible for ILOE insurance, employees must be enrolled in the program and pay a monthly insurance premium based on their salary.
According to the Ministry of Human Resources and Emiratization (MoHRE), the application deadline for this program is June 30. Failure to do so will result in a fine of AED 400.
Failure to pay insurance premiums after a 90-day grace period will result in a penalty of AED 200 and the policy will lapse.
Here’s everything you need to know about the unemployment insurance scheme:
How The ILOE Insurance Scheme Works
If you lose your job in the UAE, the unemployment insurance scheme will compensate you for up to three months. Your compensation will be 60% of your base salary. The maximum monthly payment you can receive is Dh20,000 ($5,445) as set by the MoHRE.
The insurance program is divided into two groups. The first group includes employees earning a monthly base salary of AED 16,000 or less. The second group is those earning AED 16,000 or more.
What is The Monthly Premium?
Employees in the first group have to pay AED 5 per month or AED 60 per year for their insurance coverage. Employees in the second group must pay AED 10 per month or AED 120 per year.
What Other Payment Options Are There?
Payments can be made monthly, quarterly, semi-annually, or annually, depending on the ministry’s bank statement. The cost of the insurance policy is subject to Value Added Tax (VAT) in the UAE.
How Much is The Compensation?
The amount of compensation depends on your monthly base salary. However, there are limits to the maximum amount you can receive.
For the first category, monthly cash cannot exceed AED 10,000. For the second category, the amount will not exceed AED 20,000.
For example, if you have a monthly base salary of AED 10,000 and you lose your job, you will receive 60% of that amount, which is AED 6,000, for three months.
How To Claim Compensation
If you are a covered worker and lose your job, you must file your claim within 30 days of the date of your unemployment.
There are three approved channels to submit your complaint:
- ILOE Insurance Web Portal
- Smart App
- Call Center
Once you have made your claim, you will be paid compensation within two weeks of the claim date.
Who is Eligible For ILOE Insurance?
Workers can benefit from the unemployment insurance scheme if they meet certain criteria:
- You must have worked and been in the insurance program for at least 12 months.
- They must not have been dismissed for disciplinary reasons or because of resignation.
- Employees who work on a commission basis can also join the plan.
However, there are certain cases when employees are not entitled to the payment:
- When they leave the country.
- When they start a new job.
These eligibility requirements determine whether or not an insured worker can receive unemployment benefits.
Does This Rule Not Apply To?
The ILOE insurance scheme does not cover UAE investors. Also excluded are domestic workers, part-time workers, workers under the age of 18, and retirees who are receiving a pension and have started a new job.
What About The Freezone Employees?
Yes, it is mandatory for workers in the free zone to register for unemployment insurance. Initially, the requirement only affected workers in the public and private sectors, as specified in the federal regulation.
However, the subscription channel for free zone workers has recently opened. This means that workers from free zones can now register for unemployment insurance.
How To Apply Online
Here are some more details about the new scheme:
- Visit the ILOE Insurance website.
- Click Subscribe Here to register.
- Choose your industry. Enter personal information like ID, phone number, and SMS verification code.
- Choose the payment interval. It can be monthly, quarterly, semi-annually, or annually. Write your email.
- Go to the payment page and complete the registration.
Dubai Insurance
Dubai Insurance is an insurance company based in Dubai. It offers various types of insurance coverage including life insurance, health insurance, property insurance, car insurance, and other general insurance products. The company provides insurance services to individuals, companies, and organizations in and around Dubai.
Dubai Insurance is the authorized insurer responsible for issuing ILOE policies on behalf of the insurance group. According to Abdellatif Abuqurah, CEO of Dubai Insurance, some large companies have already signed up for this insurance coverage.
Also Read: UAE Will No Longer Be Tax-Free in 8 Days
