6.5 million subscribe to UAE unemployment insurance scheme since Jan.1 - GulfToday

6.5 million subscribe to UAE unemployment insurance scheme since Jan.1

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Picture used for illustrative purposes.

Gulf Today, Staff Reporter

The UAE Ministry of Human Resources and Emiratisation announced that more than 6.5 million employees have subscribed to the unemployment insurance system since it entered into force on January 1, 2023 until October 1.

The system includes workers in the federal government sector and the private sector, both citizens and residents.

The investor (owner of the establishment in which he works), and temporary contract workers, juveniles under 18 years of age, and a retiree who receives a retirement pension and has joined a new job are excluded from registration in the system.

The Ministry explained that the worker's failure to register himself in the system will result in a fine of Dhs400, and that the worker can verify whether fines have been imposed on him for not participating in the system through the Ministry's smart application, website, and business service centers.

The Ministry appreciated the commitment of subscribers to the unemployment insurance system, “which confirms their keenness to comply with Federal Decree Law No. (13) of 2022 regarding unemployment insurance, and their awareness of the benefits provided to them by the system, which aims to provide a social protection umbrella for citizen workers.” And residents to ensure a decent life for themselves and their families until an alternative job opportunity becomes available, as well as attracting and retaining the best international talent in the country’s labor market.”

The Ministry stressed the need for those who have not yet subscribed to the system to register in it, noting that subscription falls within the employee’s responsibility, while the option is available to employers to register their workers in the system without bearing any costs on the employer.

There are several channels available for registration in the system, including the Insurance Complex’s website www.iloe.ae, the Insurance Complex’s smart application ILOE, or via Kiosk self-service devices, business service centers, exchange centers (such as Al Ansari Exchange), and smart phone applications for banks and bankers.

The unemployment insurance system includes two categories, the first includes those whose basic salary is 16 thousand dirhams or less, and the value of the insured employee’s subscription within this category is Dhs5 per month (or Dhs60 annually), and the maximum value of monthly compensation is Dhs10,000.

The second category includes those whose basic salary exceeds Dhs16,000. The subscription value for this category is Dhs10 per month (or Dhs120 annually), and the maximum value of monthly compensation is Dhs20,000.

Compensation is due on the condition of participating for at least 12 consecutive months in the insurance. The insured’s right to claim the compensation value is forfeited if he leaves the country or joins a new job. The period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim.

The insurance programme compensates the insured with a cash sum for a period not exceeding three months, provided that he does not resign or is dismissed for disciplinary reasons.

The compensation received by the eligible employee is calculated at 60% of his basic salary or the ceiling amount according to the system in the last six months before unemployment.

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