UAE residents who were among the early subscribers to the mandatory Involuntary Loss of Employment Insurance (ILOE) are now receiving reminders to renew their policies.
The Ministry of Human Resources and Emiratisation (MoHRE) has issued notifications to those whose policies are due for renewal on January 2, 2024.
To renew, residents can use MoHRE’s digital platforms by clicking on the ‘Subscribe/Renew Here’ button. This comes as the MoHRE reported that around 14 percent of eligible employees have yet to subscribe to the mandatory scheme.
The Ministry of Human Resources and Emiratisation (MoHRE) will begin collecting financial penalties from workers who remain unregistered in the Unemployment Insurance Scheme or who fail to pay their periodic instalments as per the payment schedule they selected upon registration.… pic.twitter.com/i7cMCe1s9S
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) December 13, 2023
For those who enrolled at the beginning of 2023, financial protection in case of job loss is now in effect. However, eligibility for compensation requires continuous subscription for at least 12 months. Residents who signed up in January 2023 can now claim compensation if they experience job loss, but not if they leave the country or secure a new job.
Over 6.7 million UAE residents have subscribed to the scheme since it began, with the enrollment deadline closing on October 1. Workers who failed to sign up by this date faced a Dh400 fine.
Read: GUIDE: UAE Unemployment Insurance for private sector employees who are unable to register
Additionally, subscribers failing to pay premiums for over three months are subject to a Dh200 fine. Those with work permits issued after October 1, 2023, must subscribe within four months or face a Dh400 fine.
Emiratis and expatriates working in the federal government and private sectors are required to subscribe. Exemptions include investors, domestic helpers, temporary contract workers, juveniles, and retirees entitled to a pension.
Read: Mandatory unemployment insurance in UAE: Top 9 FAQs to avoid fines
The scheme is divided into two categories based on salary:
- Basic salary of Dh16,000 or below: Premium is Dh5 per month (Dh60 annually), with a maximum monthly compensation of Dh10,000.
- Basic salary exceeding Dh16,000: Premium is Dh10 per month (Dh120 annually), with a maximum monthly compensation of Dh20,000.
Compensation is paid for a maximum of three months from the date of unemployment, calculated at 60 percent of the average basic salary in the six months preceding unemployment. Termination for disciplinary reasons renders the employee ineligible for compensation.
