The Ministry of Human Resources and Emiratisation (MoHRE) has called on all employees working in the private sector and federal government to register for the unemployment insurance scheme before the deadline on October 1, 2023 to avoid a AED400 fine and other penalties.
Previously set for June 30, the deadline has been extended by four months to provide employees additional time to register, especially for blue-collar workers. Since its launch in January, approximately five million employees have subscribed to the job loss insurance scheme.
Through the mandatory job loss insurance, also known as the Involuntary Loss of Employment (ILOE), employees who experience non-disciplinary termination can receive cash compensation for three months, amounting to 60 percent of their average basic salary over the six months prior to termination.
To be eligible for compensation, subscribers must be registered in the scheme for a minimum of 12 consecutive months and submit an application within 30 days of leaving employment, provided their departure was not due to disciplinary reasons, resignation, or fraudulent claims. Compensation will cease if the employee secures new employment or leaves the country.
The cost of the insurance is AED5 per month, plus VAT. Employees earning a monthly salary below Dh16,000 can subscribe on a monthly, quarterly, semi-annually, or annual basis. For those earning Dh16,000 or more, the monthly fee increases to AED10. Employees have the option to choose from the available payment intervals. Additional insurance benefits are also available for subscribers.
However, certain categories are exempted from the scheme, including investors, domestic workers, temporary contract workers, residents under the age of 18, and retirees earning a retirement pension who have secured new employment.
It is important to note that subscribing to the job loss insurance scheme is the responsibility of the employee, not the employer, as outlined by the MoHRE guidelines.
Workers who have not yet subscribed to the job loss insurance scheme can do so through various channels, including the insurance pool website www.iloe.ae, mobile app, ATMs, business service centers, Al Ansari Exchange, banking applications, telecom companies’ bills, and text messages.
