Your complete guide to the Involuntary Loss of Employment Insurance (ILOE)

• About
• Mechanism
• Eligibility
• Subscription
• Claims
• Renew Your ILOE Subscription
• FAQs

The welfare of UAE nationals and residents has been at the forefront of all government plans. Whether it’s infrastructure development or labour law in the UAE, the primary objective is to protect workers’ rights. One of these initiatives is the UAE unemployment insurance scheme, a step towards ensuring financial sustainability for those employed in the country. Since, its introduction last year, more than 6 million people have registered.

Here is what you need to know about the UAE’s social security support program.

UNEMPLOYMENT INSURANCE IN THE UAE FOR EMIRATIS AND RESIDENTS

As announced by the Minister of Human Resources and Emiratisation, H.E. Dr Abdulrahman Al Awar, this programme has financially supported individuals who lose their jobs.

All federal (government) and private sector employees were asked to subscribe to this scheme. Failure to do so would incur a fine of AED 400, while subscribers who failed to make regular payments would be fined AED 200. Registration has to be completed by the Unemployment Insurance UAE last date to avoid fines.

HOW DOES IT WORK?

The Ministry of Human Resources and Emiratisation signed nine local insurance companies to set up the programme’s framework. The list includes:

• Dubai Insurance Company
• Abu Dhabi National Insurance Company
• Oman Insurance Company
• Al Ain Ahlia Insurance Company
• Emirates Insurance Company
• Orient Insurance
• Abu Dhabi National Takaful Company
• National General Insurance Company
• Orient UNB Takaful Company

The insurance programme has two categories: workers with a basic salary of up to AED 16k and employees who earn more than AED 16k in basic salary.

The contribution of the UAE unemployment pay for Emiratis and residents was subject of much interest when the scheme was announced. The insurance cost for the first category employees would be AED 5+VAT per month, amounting to AED 60 annually.

Those in the second category will pay AED 10+ VAT per month or AED 120 per year. Employee payments will be made either monthly, quarterly, bi-annually or yearly. Moreover, the value of the insurance policy is subject to VAT.

In return, these employees are given a monthly cash sum if they meet the set criteria. The sum cannot be more than AED 10k for first-category employees and AED 20k for second-category employees. It is calculated at a rate of 60% of the basic salary.

ELIGIBILITY FOR LOSS OF EMPLOYMENT INSURANCE UAE

To be eligible, an Emirati or UAE resident employee must have worked and subscribed to the UAE Unemployment Insurance 2024 for at least 12 months.

If an employee resigns or is fired for disciplinary reasons, he or she will not be eligible for a claim. Similarly, insured employees will not be eligible if they have left the UAE or joined another company.

WHO ARE EXEMPTED?

This scheme does not apply to domestic workers, investors (company owners), temporary contract holders, under-18 employees or retirees who receive pensions.

UNEMPLOYMENT SCHEME SUBSCRIPTION

As per the MOHRE announcement, there are multiple subscription methods. You can subscribe for free using the Involuntary Loss of Employment (ILOE) website or app.

Here’s how you can subscribe:

• Visit the unemployment insurance UAE website and click the ‘Subscribe Here’ tab.
• Under individual, you have to choose between federal or private job options.
• Sign in using your Emirates ID; a one-time password will be sent to your phone.
• Next, your basic salary and the monthly policy premium will appear. Check the box to confirm your details.
• Select the policy coverage period (One/Two years).
• Select your premium schedule (annual, semi-annual, quarterly or monthly).
• Enter the email ID where you want to get the insurance certificate.
• Make the payment with your card.
• Download your unemployment insurance UAE certificate.

You can also subscribe via the Botim app, Tawjeeh, Tasheel, Al Ansari Exchange, du, Etisalat kiosks and bank apps/ATMs. However, you will be charged a fee for this method.

Employees working in free zones and semi-government entities can also register for the involuntary loss of employment (ILOE) scheme.

WHAT DOCUMENTS ARE REQUIRED FOR SUBSCRIPTION?

Applicants would require:

• Valid Emirates ID
• Active UAE mobile number

WHAT IS THE PENALTY FOR NON-SUBSCRIPTION?

Those failing to register for the insurance will be subject to an AED 400 fine.

ARE EMPLOYERS REQUIRED TO REGISTER THEIR EMPLOYEES FOR THE SCHEME?

Employers ARE NOT required to register their employees or pay for the mandatory scheme.

UNEMPLOYMENT INSURANCE UAE CLAIMS

Any employee who loses his or her job must make a claim within 30 days through the claim channels, including smart application, call centre or insurance pool’s e-portal. Compensation is handed out within two weeks of the claim. It is capped at a maximum of three months per claim.

HOW TO RENEW YOUR ILOE SUBSCRIPTION?

How to renew unemployment insurance UAE subscription is a commonly asked question these days. The good thing is that you can renew unemployment insurance UAE online.

Applicants can renew loss of employment insurance UAE before or just after its expiry. You can follow these steps to renew UAE unemployment insurance in 2024.

• Visit the unemployment insurance UAE website
• To renew unemployment insurance UAE online, click on ‘Subscribe/Renew Here’ button.
• Under the ‘Individual’ category, you can choose the option that applies to you.
  • Non-Registered in MOHRE (Free-zone workers)
  • Private sector
  • Federal Government employee (Public sector)
• Sign in with an OTP (sent to your phone) or existing account
• Next, you will be able to renew loss of employment insurance UAE.
• Pay the fees and UAE unemployment insurance 2024 will be registered.

FAQS ABOUT THE UAE UNEMPLOYMENT INSURANCE SCHEME

WHO IS ELIGIBLE FOR THE UAE UNEMPLOYMENT INSURANCE CLAIM?

Apart from the exempted group, anyone who has already subscribed to the scheme for at least 12 months, hasn’t been let go from the job due to disciplinary reasons and is still living in the UAE will be eligible.

IS THE UNEMPLOYMENT PAY SCHEME UAE FOR NON-EMIRATI EMPLOYEES AS WELL?

Yes, both UAE citizens and residents who lose jobs can use this blanket cover. The scheme is mandatory for all employees of an organisation.

I AM FACING PROBLEMS WHEN RENEWING UNEMPLOYMENT INSURANCE UAE ONLINE?

For any queries regarding unemployment insurance UAE subscription, you can call 600-599-555.

WHAT ARE THE OBJECTIVES OF THIS INITIATIVE?

• The idea of the insurance company programme is to provide flexibility and not overburden anyone trying to secure their future.
• To provide social protection in a period of strife for a limited duration.
• Enhance competitiveness in the UAE market.
• Attract top talent from the globe by providing a safety net to those who face problems.

WHAT ARE THE CONDITIONS FOR ENTITLEMENT TO COMPENSATION?

As discussed, an employee must have worked and subscribed to the UAE Unemployment Insurance for at least 12 months.

HOW IS THE COMPENSATION AMOUNT CALCULATED?

The amount is calculated at a rate of 60% of the basic salary.

HOW CAN I FIND A JOB IN THE UAE?

Are you looking for employment in the UAE? Here is a list of the top recruitment agencies in the UAE that can help you. Similarly, you can find excellent opportunities using these trending UAE job sites.

The UAE unemployment insurance scheme is a progressive step that will further enhance the country’s reputation as a land of opportunity. The unemployment pay scheme in the UAE will allow individuals some space when they face difficult times. This plan would also benefit people with families to care for while managing the transitionary period between jobs.

So, make sure to subscribe to the ILOE scheme UAE.