UAE unemployment insurance scheme: How to apply before deadline

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) extended the due date for fines to be imposed on those workers who have not subscribed to the mandatory unemployment insurance scheme. Eligible employees now have until October 1 to register to avoid the Dhs400 fine.

Why should you register?

Anyone who loses their job as a result of termination of services (except for disciplinary reasons or resignation) is entitled to a maximum three-month cash compensation.

The subscription fees depend on the employee’s basic salary. The first category is those with a basic salary of Dhs16,000 or less; their subscription fee is AED5 per month (Dhs60 annually), whereas, the second category is those with a basic salary exceeding Dhs16,000; their subscription fee is Dhs10 per month (AED120 annually).

The first category is eligible for a monthly cash compensation reaching up to Dhs10,000, while the maximum monthly cash compensation for the second category is Dhs20,000.

The insurance fees can be paid monthly, quarterly, once every six months, or annually. The insurance compensation is calculated at a rate of 60 percent of the employee’s basic salary in the last six months prior to his or her unemployment.

Who can register?

The terms and conditions of the new law apply to all employees in the federal government and the private sector working in the UAE.

Who cannot register?

The unemployment insurance scheme is an employee requirement only. Employers are not required to register their employees in an insurance scheme, nor are employers required to pay any contributions to the scheme.

The scheme applies to all workers in the private and federal sector except:
1. Investors, business owners who own and manage their businesses themselves
2. Domestic workers
3. Employees on a temporary basis
4. Juveniles under the age of 18
5. Retirees who receive a pension and have joined a new employer

What happens if an employee fails to register?

Failure by an employee to register by the applicable deadline will lead to fines being imposed. An upfront fine of Dhs400 will be imposed on the employee. After registering for the scheme, if an employee fails to pay the insurance premiums in accordance with the payment periods for more than three months, the insurance certificate will be cancelled and a fine of Dhs200 will be imposed.

How to register?

1. Insurance pool’s website can be accessed at www.iloe.ae and its smart mobile application available for both Android and Apple users
2. Bank ATMs and kiosk machines
3. Business service centres
4. Money exchange company outlets such as Al Ansari and Lulu Exchange
5. du and Etisalat channels (to be rolled out soon)
6. Via SMS

Watch the video by the UAE government on the benefits of the unemployment insurance scheme:

Also Read: UAE Unemployment Insurance scheme: Know the policy claim companies