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UAE unemployment insurance nets 5.73 million subscribers ahead of October 1 deadline

A total of 5.73 million employees in the UAE have already subscribed to the mandatory Unemployment Insurance ahead of the October 1 deadline, according to the Ministry of Human Resources and Emiratisation (MOHRE).

Of this number, 5.6 million subscribers are from the private sector, while more than 87,000 subscribers are employees in the federal government sector.

The Unemployment Insurance Scheme went into effect on January 1. It is mandatory for all employees in the UAE. After the extended deadline of October 1, a Dh400 fine will apply.

The insurance scheme is not mandatory for investors and business owners, 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 (, the ILOE smartphone application, designated kiosks, business service centres, exchange companies and banks’ smartphone applications.

The unemployment insurance premium is Dh5 per month for those with a basic salary of Dh16,000. The monthly premium is Dh10 per month for those with a basic salary over Dh16,000. Insurance compensation can be claimed as long as the insured person has paid the premium for 12 consecutive months. The insured’s right to compensation is forfeited in the event that he or she cancels residency and leaves the country or joins a new job, within the processing period.

The maximum monthly payout for an insurance claim is Dh10,000 for three months for those paying a monthly premium of Dh5. For those paying a monthly premium of Dh10, the maximum payout is Dh20,000 for three months. The claim will be processed within two weeks of submission.

The compensation is calculated at the rate of 60 percent 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. ICA/Expat Media

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