Unemployment Insurance UAE - Benefits, Deadline & Subscription

Unemployment Insurance UAE - A Guide Covering All Your Queries

Welcome to our comprehensive guide on the Involuntary Loss of Employment Scheme UAE. We've curated all the details directly from the official websites to ensure you have the most accurate and up-to-date information at your fingertips. Feel free to bookmark this article, as we consistently update it to keep you informed.

Table of Contents:-

• Introduction to the ILOE Scheme

• Coverage and Exclusions

• Objectives of the ILOE Scheme

• Subscription Fees and Payment Options

• Enrollment Requirements

• Subscription Channels

• Compensation Request Process

• Compensation Calculation and Eligibility

• Insurance Pool Entities

• Filing a Compensation Claim Procedure

• Conditions for Losing Eligibility

• Fines for Non-Compliance

• Summarizing the ILOE Scheme's Importance

• FAQ Section on ILOE Insurance

What is UAE Unemployment Insurance UAE?

The UAE Unemployment Insurance, officially named the Involuntary Loss of Employment (ILOE) Scheme, is a mandatory insurance policy implemented since January 1, 2023. It covers both federal government and private sector employees in the UAE, providing compensation in the form of a cash benefit for up to three months per claim in the event of job loss, subject to the policy's terms and conditions. Its primary objective is to offer financial support to residents who involuntarily lose their jobs due to reasons other than resignation or disciplinary action.

Who is covered by the scheme?

All workers in the private and federal sector are covered, excluding:

• Investors managing their own businesses.

• Domestic workers.

• Temporary employees.

• Individuals under 18 years old.

• Retirees with a pension who have joined a new employer.

What are the objectives of the Involuntary Loss of Employment (ILOE) Scheme?

The scheme aims to:

1. Provide income support during unemployment.

2. Boost Emiratis' competitiveness in the job market.

3. Ensure social protection for the unemployed.

4. Attract and retain top global talent for a competitive knowledge-based economy.

UAE Ministry to Impose Fines on Uninsured Job Loss - Deadline Passed!

The Ministry of Human Resources and Emiratisation (MoHRE) is cracking down on the 14% of eligible UAE employees who have not yet enrolled in mandatory job loss insurance. If you missed the October deadline, fines are on the horizon.

Launched in January 2023, the job loss insurance scheme aimed to cover eligible employees against unexpected unemployment. Those who failed to subscribe to the system by the deadline now face a Dh400 fine, while subscribers who neglect timely premium payments are subject to a Dh200 penalty.

Don't let fines accumulate – check and settle them conveniently through MoHRE's digital platforms or by visiting authorized business service centers. The ministry's digital channels even offer installment plans to ease the financial burden on workers.

Act promptly to avoid severe consequences, as failure to pay fines may result in administrative measures such as the denial of new work permits. In some cases, fines might be deducted directly from salaries or end-of-service benefits.

With over 6.7 million workers already enrolled in the unemployment insurance scheme, those insured can receive financial compensation for up to three months following job loss. Stay informed and compliant to safeguard your professional future.

What are the subscription fees for the UAE Unemployment Insurance?

There are two subscription categories based on monthly basic salary:

CATEGORY A:

For those earning 16,000 dirhams or less, the fee is 5 dirhams per month (60 dirhams annually).

CATEGORY B:

Individuals with a monthly basic salary exceeding 16,000 dirhams will pay 10 dirhams per month, totaling 120 dirhams annually.

Employees on a commission basis can select their subscription category if their contract doesn't specify a basic salary.

Furthermore, subscribers can opt for additional benefits beyond the basic package in consultation with the insurance pool. Please note, Value Added Tax (VAT) will be added to the subscription fee.

What payment options are available to settle the subscription fee within the ILOE Scheme?

You can choose from:

• Monthly payments

• Quarterly payments

• Semi-annual payments

• Annual payments

What's needed to subscribe to the ILOE Scheme?

To enroll in the ILOE Scheme, you'll need:

1. Your Emirates ID card number

2. Unified number/Work Permit number

3. A valid UAE phone number issued within the country

How can I subscribe to the ILOE Scheme?

You can subscribe through the following channels:

• Channel 1 - ILOE portal: www.iloe.ae

• Channel 2 - ILOE Smart APP

• Channel 3 - ILOE Call Center: 600599555

• Channel 4 - Licensed exchange centers

• Channel 5 - Telecom companies' billing and SMS services

• Channel 6 - Designated kiosks

• Channel 7 - Selected banks' applications and ATMs

• Channel 8 - Specific businessmen service centers authorized by the Ministry

Where can I submit a compensation request within the ILOE Scheme?

To initiate a compensation request, you have several avenues:

• Utilize the ILOE portal at www.iloe.ae

• Access the ILOE Smart APP

• Contact the ILOE Call Center at 600599555

Is compensation uniform for all in the ILOE Scheme, and how's it calculated?

Compensation within the ILOE Scheme isn't uniform. It's determined based on an individual's average basic salary from the six months preceding job loss. The monthly cash compensation can reach up to 60% of this average, capped at specific values for each category:

CATEGORY A: Maximum compensation capped at 10,000 Dirhams per month.

CATEGORY B: Maximum compensation capped at 20,000 Dirhams per month.

The compensation period is limited to three consecutive months per claim. 

What's the  eligibility criterion for compensation?

For compensation eligibility:

1. Maintain 12 consecutive months of subscription.

2. Timely premium payments.

3. Unemployment due to reasons excluding resignation.

4. No dismissal for disciplinary reasons.

5. Claim filed within 30 days post-termination.

6. No ongoing abscondment complaint.

7. Legitimate claim without fraud or fictitious employment.

8. Job loss not due to non-peaceful strikes.

9. Legal presence in the UAE.

Who is Eligible to Subscribe?

The subscription is open to both Emiratis and residents actively employed in the federal government and private sectors. This inclusive approach ensures that a wide spectrum of individuals can benefit from the subscription service.

Exempted Categories

Certain categories are exempted from the subscription service. These include:

• Investors (Owners of Companies): Individuals who own companies they work at are exempted from this subscription.

• Domestic Helpers: Domestic helpers, often engaged in household roles, are not eligible for this subscription service.

• Temporary-Contract Workers: Individuals with temporary employment contracts fall under the exempted category for this subscription.

• Juveniles Under the Age of 18: Minors under the age of 18 are not eligible to subscribe to this service.

• Retirees with Pension Joining a New Job: Individuals who are retirees entitled to a pension but have joined a new job are exempted from this subscription.

Which entities are part of the insurance pool for the policy?

The insurance pool includes:

1. Dubai Insurance Company

2. Abu Dhabi National Insurance Company

3. Al Ain Ahlia Insurance Company

4. Emirates Insurance Company

5. National General Insurance Company

6. Orient Insurance

7. Oman Insurance Company

8. Orient UNB Takaful Company

What are the procedures for filing a compensation claim in the Unemployment Insurance Scheme?

1. The worker needs to submit the claim within 30 days of becoming unemployed.

2. Upon receiving the claim, the insurance company has two weeks to transfer the compensation to the insured's account.

3. Insurance providers must process claims following the policy terms, Central Bank of the UAE regulations, and relevant legislations.

4. Compensation starts from the job loss date and continues for a maximum of three months or until reemployment, whichever happens first.

5. Breaches of insurance policy terms will be reported by MoHRE.

6. For federal government employees, the Federal Authority for Government Human Resources will coordinate the 'Unemployment Insurance Scheme' implementation with the Ministry of Finance.

Under what circumstances might an insured worker lose eligibility for compensation in the Unemployment Insurance Scheme?

An insured worker can lose eligibility for compensation if:

1. Dismissal occurs due to disciplinary reasons under UAE Labour Law or the Human Resources Law in the federal government, or any applicable legislation.

2. Fraud or deceit is involved in the claim.

3. The establishment where the worker is employed is fictitious.

What fines are imposed for failure to subscribe or pay for the Unemployment Insurance scheme?

Failure to subscribe to and pay for Unemployment Insurance Scheme

Fines

Not subscribing before October 1, 2023

AED 400 fine

Failure to pay premiums for over three months past due date

AED 200 fine; insurance certificate cancellation

Non-payment of fines within three months of due date

Deduction from wages or end of service benefits as per Ministry guidelines

Information Source:-

• https://u.ae/en/information-and-services/jobs/unemployment-insurance-scheme 

• https://www.iloe.ae/

• https://www.iloe.ae/Faq.aspx

Summing Up

In summary, the UAE's Involuntary Loss of Employment (ILOE) Scheme stands as a vital support system for residents facing unforeseen job loss. It offers financial assistance for up to three months per claim, excluding resignations or disciplinary actions. This scheme's significance in providing a safety net during challenging times cannot be overstated. To benefit from this crucial support, enrollment is key. Stay informed, enroll, and secure your access to the UAE's Unemployment Insurance Scheme—it's your safety net during uncertain times of job loss.

Frequently Asked Questions:-

1. Is ILOE insurance mandatory?

Yes, effective January 1, 2023, the UAE has made ILOE insurance mandatory for eligible employees.

2. What's the deadline for subscribing to the ILOE scheme?

The Ministry has extended the deadline for subscribing to the ILOE scheme. The new deadline for fines on non-subscribers is now October 1, 2023.

3. What payment options are available for the Insurance Scheme?

The UAE Government offers convenient payment options for ILOE insurance subscriptions. These include the ILOE Portal, Official ILOE App, Exchange Centers, Tawjeeh & Tasheel Business Centers, Telecom Service Bills, SMS Payments, and selected Payment Kiosks & Apps.

4. Where can I find more information about ILOE insurance?

Visit www.iloe.ae or contact the ILOE insurance pool at 600 599 555 for further details.

5. What happens if the insurance premium isn't paid on time?

Failure to pay insurance premiums for over three months from the due date will result in policy cancellation and a fine as per relevant laws.

6. If the insured hasn't paid the insurance premium for over three months based on the agreed payment plan, resulting in the cancellation of the insurance certificate, can they re-subscribe?

Yes, the employee must enroll again through a new insurance policy.

7. When does the insurer's obligation to provide coverage end?

• Upon reaching the Maximum Aggregate Limit or throughout the insured's work life in the UAE.

• In case of the insured's death, coverage ends on the date of death.

8. Does an absconding complaint affect insurance premium payments?

No, if there's an absconding complaint, the worker might not be obligated to pay premiums as per the ministerial decision.

9. What if I subscribed but haven't received my Insurance Certificate?

• Step 1 - Login to the ILOE portal or ILOE Mobile App.

• Step 2 - Select your Sector.

• Step 3 - Enter your Emirates ID and Mobile number, and Request OTP.

• Step 4 - Click on View Policy Details to access your Certificate.

10. What should you do if you've chosen a payment method and are unsure about the due amount?

Log in to the ILOE portal www.iloe.ae or the ILOE Mobile App. Select your sector, add your Emirates ID and mobile number, request OTP, and click on "View Statement" for detailed information on the amount due.