The clock is ticking for employed individuals in the United Arab Emirates (UAE) as the deadline to register for the government-mandated Unemployment Insurance scheme is fast approaching. With just 30 days remaining, the grace period to enroll in the scheme will expire on June 30.
Introduced earlier this year in January, the Unemployment Insurance scheme is compulsory for all employees, including those working in free zones and semi-government entities.
According to the Ministry of Human Resources and Emiritisation (MoHRE), over two million individuals have already registered for the scheme as of May 18, 2023.
The primary objectives of the unemployment insurance scheme are multi-faceted.
Firstly, it aims to provide insured parties with income for a limited period during their unemployment. Additionally, it seeks to enhance the competitiveness of Emiratis in the labor market, ensuring a continued decent living for the unemployed and fostering a competitive knowledge economy by attracting and retaining top international talent.
When is the deadline?
The registration deadline has been divided into two periods based on the date of employment. The majority of employees need to complete their registration by the end of June 2023.
If an employment contract was signed before February 28, 2023, the registration deadline is June 30, 2023. However, employees who began their employment after that date must register within four months of their start date.
Who is eligible to apply?
The eligibility criteria for registration encompass all employees in the federal government and private sector working within the UAE. Nevertheless, certain categories of workers are exempt from the scheme. These include investors and business owners who personally manage their businesses, domestic workers, employees on a temporary basis, juveniles under the age of 18, and retirees receiving a pension who have joined a new employer.
Penalty for missing the deadline
Failing to register within the specified deadline carries consequences. Employees who miss the deadline will face a fine of Dhs400.
Furthermore, if an employee fails to pay the insurance premiums for more than three months after registering, their insurance certificate will be canceled, and they will incur an additional fine of Dhs200.
How do I register?
To facilitate registration, the Unemployment Insurance scheme offers multiple channels
Interested individuals can visit the insurance pool’s website at www.iloe.ae or utilize the smart mobile application, which caters to both Android and Apple users. Additionally, registration can be completed at bank ATMs and kiosk machines, business service centers, money exchange company outlets such as Al Ansari and Lulu Exchange, and soon through du and Etisalat channels. An SMS registration option is also available.
With the countdown underway and just 30 days remaining, the UAE’s employed workforce is encouraged to act promptly and fulfill their registration obligations for the Unemployment Insurance scheme. By doing so, they can ensure compliance with the law and avail themselves of the benefits provided by the insurance scheme in the event of unemployment.
