Home GCC More than 7 million workers sign up for UAE’s unemployment insurance The unemployment insurance was rolled out in January 2023 and is mandatory for all employees by Gulf Business March 20, 2024 Image credit: MoHRE The UAE Cabinet revealed that at least 7 million people have now signed up for the mandated unemployment insurance scheme. The unemployment insurance scheme, also known as Involuntary Loss of Employment (ILOE), provides economic aid to workers in case of a job loss. The sign up numbers point to how levels of compliance have increased on this front, considering that the scheme was only launched in January 2023. Underscoring the success of the scheme, Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of UAE and Ruler of Dubai, at a recent Cabinet meeting, said, “The UAE ranked first in the world in the number of labor disputes according to the Global Competitiveness Yearbook, and also first in the world in its ability to attract talent according to the Prosperity Index, and third in the world.” “In digital skills… today we have more than 7 million employees in all sectors under the umbrella of unemployment insurance, and 98.8% of our workforce is within the workers’ protection insurance system.” ترأست اليوم اجتماعاً لمجلس الوزراء بقصر الوطن بأبوظبي.. استعرضنا في بدايته أهم تطورات سوق العمل في الدولة.. حيث جاءت الإمارات في المركز الأول عالمياً في قلة النزاعات العمالية بحسب الكتاب السنوي للتنافسية العالمية والأول عالمياً أيضًا في قدرتها على استقطاب المواهب حسب مؤشر… pic.twitter.com/V4ybmVHYV5 — HH Sheikh Mohammed (@HHShkMohd) March 18, 2024 The insurance scheme was rolled out in the country in January 2023 and is mandatory for all employees including those in the free-zone and semi-government entities. Objectives of the unemployment insurance scheme The insurance scheme aims to: • Provide the insured parties with income for a limited period of time during his/her unemployment • Enhance the competitiveness of Emiratis in the labour market • Provide social protection to ensure continued decent living for the unemployed • Achieve a competitive knowledge economy by attracting and retaining the best international talent Payout The Unemployment Insurance Scheme comprises two categories. The first category encompasses those with a basic salary of AED16,000 or less, with an insurance premium of Dhs5 per month (Dhs60 annually). The maximum monthly compensation stands at Dhs10,000. The second category encompasses individuals with a basic salary exceeding Dhs16,000, necessitating an insurance premium of Dhs10 per month (Dhs120 annually). The monthly compensation cap for this group is set at Dhs20,000. How to submit ILOE/ unemployment insurance claim? The ILOE scheme began accepting claims starting January this year, as some subscribers fulfilled the eligibility criteria of 12 months. To be eligible for compensation, the subscriber (employee) must have been enrolled in the unemployment insurance scheme for a minimum of 12 consecutive months. The right to compensation is relinquished if the individual cancels their residency and leaves the country or secures a new job during the processing period. Here are the steps to submit a claim to the ILOE: Unable to display PDF file. Download instead. Claims are typically processed within two weeks of submission. To know more about the scheme visit the Ministry of Human Resources and Emiratisation’s (MoHRE) website here. Tags claim ILOE Involuntary Loss of Employment scheme MOHRE UAE Unemployment Insurance Programme Unemployment Insurance scheme You might also like Lunate receives MoHRE, SCA initial nod to offer EoSB investment offerings UAE announces Eid Al Adha 2024 holidays for public, private sector UAE to open 6,000 air-conditioned delivery rider rest areas Emiratisation: MoHRE reminds private firms to comply with June 30 deadline