THE UNEMPLOYMENT INSURANCE SCHEME UAE

Everything You Need to Know About The Unemployment Insurance Scheme

The UAE Ministry of Human Resources and Emiratization has made a significant decision to implement the Unemployment Insurance Scheme. This is in accordance with Federal Decree-Law No. 13 of 2022, the goal of this initiative is to provide a cost-effective solution to support employees in their professional development while also ensuring stability without any additional financial burden on employers. This is a noteworthy measure that will greatly benefit the workforce.

Everything you need to know is detailed below.

When does the subscription start?

The service officially began on January 1st 2023, which is provided by The Insurance Pool, and represented by Dubai Insurance.

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Who can sign up for the scheme?

The scheme is open to all UAE nationals and residents working in the private sector and federal government. However, it should be noted that the scheme has certain exemptions such as investors who own the companies they work for, domestic helpers, temporary-contract workers, juveniles under the age of 18 and retirees who are already entitled to a pension and have joined a new job.

How can I sign up for the scheme?

There are a variety of channels for you to sign up through:

• Online registration through the website www.iloe.ae and the iloe app, as well as kiosk machines with no additional charges.
• Businessmen service centres (Tawjeeh and Tasheel) and Al Ansari Exchange with a small service fee.
• Bank ATMs and applications, and soon, through telecommunication bills with a small service fee. Please note that service charges may apply for these channels.

How much does it cost?

The subscription fee for the Unemployment Insurance Scheme is based on the employee’s basic salary. If the salary increases during the coverage period, the employee can request to adjust the premium accordingly.

CATEGORY A:

• For those with a basic salary of AED16,000 or less, the subscription fee is AED5 per month (AED60 annually) and they are eligible for a monthly cash compensation of up to AED10,000.

CATEGORY B:

• For those with a basic salary exceeding AED16,000, the subscription fee is AED10 per month (AED120 annually) and they are eligible for a maximum monthly cash compensation of up to AED20,000.

When do I need to pay?

When it comes to paying for the Unemployment Insurance Scheme, you have options! You can choose to pay on a monthly, quarterly, semi-annual or annual basis, and the best part? You can do it all online with a simple click of a button, using your Visa or MasterCard credit/debit card and all in AED.

And when it comes to receiving the insurance compensation, it’s calculated based on 60% of your basic salary in the last six months before you were unemployed. So, you can rest easy knowing that you have a safety net in place to help you during difficult times.

Why do I need this?

Well, first of all, this cover is now mandatory for everyone. So, it’s something you will need to get regardless. In saying this, the cover is highly beneficial to everyone. In the event of losing your job due to termination of services, you may be eligible for a cash compensation for a maximum of three months. However, this does not apply if the job loss was due to resignation or disciplinary reasons. It’s always better to be aware of the regulations and rules so that you can be prepared in case of any eventuality. Anyone who loses their job as a result of termination of services (except for disciplinary reasons or resignation) is entitled to a maximum three-month cash compensation. There are some caveats to be aware of though, in order to make a claim, you must be subscribed to the scheme for at least 12 consecutive months and you can only claim a total of 12 monthly benefits over your entire work life.