The Ministry of Human Resources and Emiratisation head office.

The Ministry of Human Resources and Emiratisation (MoHRE) has called on citizens and residents eligible for the Unemployment Insurance Scheme to register in the system before 1st October to avoid a Dhs400 fine.

The Ministry said it has provided the option for employers to register their employees in the system, however, "it is the employee’s responsibility to enrol in the system, not the employer’s, who incurs no additional costs.”

The Scheme applies to all workers in the private and federal sectors - both citizens and residents - excluding investors (business owners who own and manage their business themselves), domestic workers, temporary employees, minors under the age of 18, and retirees who receive pension and have joined a new employer.

Subscription can be completed by visiting the Involuntary Loss of Employment (ILOE) Insurance Pool website www.iloe.ae, the ILOE smartphone application, as well as Kiosks, business service centres, exchange companies (such as Al Ansari), and banks’ smartphone applications.

The insurance scheme is divided into two categories: the first covering those with a basic salary of Dhs16,000 or below, where the insurance premium for the insured employee in this category is set at Dhs5 per month (Dhs60 annually), and the maximum monthly compensation is set at Dhs10,000.

Meanwhile, the second category includes those with a basic salary exceeding Dhs16,000, and the insurance premium is Dhs10 per month (Dhs120 annually). The monthly compensation for this category is capped at Dhs20,000.

The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The insured’s right to compensation is forfeited in the event that he/she cancels their residency and leaves the country or joins a new job, within the processing period. The insurance claim will be processed within two weeks of submission.

The compensation is calculated at the rate of 60% of the average basic salary in the last six months before unemployment and paid for a maximum of three months for each claim from the date of unemployment, provided the employee in question was not terminated for disciplinary reasons, and has not voluntarily resigned.

The system aims to strengthen job market and provide social protection for workers to ensure a decent life for them and their families until alternative employment opportunities are available, in addition to attracting the best talents to the country.

WAM