Photo used for illustrative purpose.

The programme has been implemented through a federal decree (No.13 of 2022), which relates to unemployment insurance that does not incur any additional costs for employers.

The scheme aims to provide financial security to workers and professionals in the public and private sectors in case of job losses.

In the first two days, 86 percent of participants chose to sign up via the website https://www.iloe.ae, one of seven channels provided by the Dubai Insurance Company, which represents the insurance complex that is in charge of providing insurance services against unemployment. Other subscription channels include the smart application of the insurance complex, self-service kiosks, businessmen service centres, Al Ansari Exchange, and smartphone applications of banks in the country, as well as telecom bills.

Ninety percent of participants chose to subscribe to the scheme annually. This option is given to two categories of individuals who are covered by the insurance. One category includes those whose basic wage is Dhs16,000 or less. The subscription amount is Dhs5 per month (Dhs60 yearly), and the maximum value of the monthly pay is Dhs10,000. The other is made up of those whose base wage is more than Dhs16,000; the monthly subscription fee for this group is Dhs10 (Dhs120 annually). The maximum monthly compensation amount is Dhs20,000.

If the insured employee does not resign or is not fired for disciplinary grounds, the insurance pays him a sum for a maximum of three months. The pay is calculated on 60 per cent of the basic salary in the last six months before being unemployed.

The compensation will be paid within two weeks following the claim date. One has a choice to pay the premium quarterly, monthly, semi-annually, or annually.

The insured individual must submit the claim through the designated channels, which are the Dubai Insurance Company’s website https://www.iloe.ae, smart application of the insurance complex, and the call centre of the insurance complex (600 599 555).

An individual has to be subscribed to the scheme for at least 12 consecutive months to be eligible for the benefit. The person forfeits his right to the claim if he leaves the country or accepts a new position.

The exempted categories for the scheme are investors or owners of establishments, domestic workers, temporary contract workers, juveniles (under 18 years), and retirees who receive a pension and joined a new job.

WAM