UAE’s unemployment insurance deadline nears: Over 5.73 million subscribers so far

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The Ministry of Human Resources and Emiratisation (MoHRE) announced on Tuesday that more than 5.73 million employees have signed up for the UAE’s Unemployment Insurance Scheme.

This record sign-up comes as the deadline for enrollment is right around the corner.

Unemployment insurance scheme

Since its inauguration on January 1 until September 25, over 5.73 million employees have subscribed to the Unemployment Insurance Scheme. This includes over 5.6 million subscribers from the private sector and more than 87 thousand subscribers from the federal government sector.

MOHRE unveiled this milestone as a reminder that the deadline for subscription is imminent. Beginning October 1, individuals eligible for the system who have not yet subscribed will incur a Dhs400 penalty.

This mandate applies to both citizens and residents working in the private and federal government sectors. It excludes investors (business owners managing their enterprises), domestic workers, temporary employees, minors under 18, and retirees receiving pensions who have joined new employers.

In a press statement, MoHRE urged those eligible for the system to expedite their registration to avoid penalties and capitalise on the benefits it offers.

Why should you sign up for it?

The Unemployment Insurance Scheme’s primary objective is to provide a social safety net for citizens and residents, ensuring decent living standards for them and their families during periods of unemployment. It also aims to attract and retain top global talent in the UAE’s labour market.

Notably, the responsibility for participating in the system lies with the employee, as per Federal Decree Law No. (13) of 2022 concerning unemployment insurance. Employers have the option to register their workers in the system without incurring any costs.

How to subscribe?

Subscription can be accomplished through various channels, including the Involuntary Loss of Employment (ILOE) Insurance Pool website (www.iloe.ae), the ILOE smartphone application, designated physical kiosks, business service centers, exchange companies (e.g., Al Ansari Exchange), and banks’ smartphone applications.

About the scheme

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.

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. Claims are typically processed within two weeks of submission.

The compensation is calculated at 60 per cent of the average basic salary during the last six months before unemployment, with a maximum payout duration of three months for each claim from the date of unemployment. The claimant must not have been terminated for disciplinary reasons or resigned voluntarily to be eligible for compensation.