Mohre Reiterates Call to Get Mandatory Unemployment Insurance Before October 1

Estimated read time 4 min read

Unemployment Insurance is mandatory for all employees in the UAE, across all sectors. ARCHIVE

The Ministry of Human Resources and Emiratisation (MOHRE) has reiterated a call on all eligible employees in the UAE to subscribe to Unemployment Insurance before October 1 to avoid a Dh400 fine.

The Unemployment Insurance is mandatory for all employees in the UAE working in the private sector, free zones and well as federal government and semi-government entities. MOHRE said “it is the employee’s responsibility to enrol in the system, not the employer’s, who incurs no additional costs.”

How to subscribe to Unemployment Insurance?

Subscription can be done via 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 and bank apps.

Subscribing to the scheme online can be done in four steps: visit iloe.ae, click on “subscribe here” to access the registration page, select the relevant sector you are employed in; enter your personal identification data, phone number and verification code sent via SMS; choose your preferred payment interval (monthly, quarterly, semi-annual or annual); enter your email address, and move onto the payment gateway to complete registration successfully.

Can employees not registered with MOHRE register?

Companies that are not registered with the MoHRE “can subscribe on behalf of their employees”. They must submit their trade licence along with a request letter to companyreg@iloe.ae

Who are exempted from getting insurance?

Those exempted from the insurance scheme are investors, business owners, domestic workers, temporary employees, minors under the age of 18 and retirees who receive pension and have joined a new employer. However, domestic workers may opt to get the insurance voluntarily.

How much does Unemployment Insurance cost?

For those with a basic salary of Dh16,000 or less, the insurance premium is set at Dh5 per month (Dh60 per year). Those with a basic salary of more than Dh16,000 will have to pay an insurance premium of Dh10 per month (Dh120 per year).

Who pays for it?

The employee must pay for his or her own insurance policy.

When can you make an insurance claim?

If you lost your job and you have made at least 12 consecutive monthly insurance payments, then you can file for an unemployment insurance claim.

How is the insurance claim calculated?

The compensation is calculated at the rate of 60 percent of the average basic salary in the last six months before unemployment.

What is the insurance compensation?

Those with monthly premium of Dh5 per month will receive a maximum of Dh10,000 per month for three months for each claim from the date of unemployment. Those with a month premium of Dh10 per month will receive a maximum of Dh20,000 per month.

What disqualifies me from making an insurance claim?

If you did not pay 12 consecutive months of your insurance premium, then you are not entitled to make a claim. If you lost your job due to disciplinary reasons, or if you voluntarily resigned from your job, then you are not entitled to make an insurance claim. You also forfeit your right to claim insurance if you cancelled your residency, leave the UAE or join a new job within the processing period of the insurance.

How long is the processing period?

The insurance claim will be processed within two weeks of submission.

What are the penalties for not getting the insurance or not paying the premium?

Those who fail to get unemployment insurance will be fined Dh400, while those who fail to pay the premiums for more than three months will be fined Dh200. MOHRE also announced that the “employee will not be eligible for a new work permit until all due fines are paid within the specified timeframe”.

ICA/Expat Media


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