UAE Unemployment Insurance: New workers get grace period

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UAE Unemployment Insurance: New workers get grace period

New employees in the UAE are given a four-month grace period to subscribe to the unemployment insurance programme, according to the Ministry of Human Resources and Emiratisation (MOHRE).

Subscription to the unemployment insurance became mandatory as of January 1, 2023 for all employees in the private and public sectors.

The deadline to subscribe to the insurance scheme was on October 1, and subscribers have the option of a single yearly payment, or quarterly or monthly payments.

For those newly employed in the UAE, authorities have given a grace period: they must
subscribe to the insurance plan within four months of entering the country or within four months from the issuance of their work permit. Failure to register for the insurance scheme within this period will result in a Dh400 fine.

The subscription fee for unemployment insurance must be paid by the employee, and not the employer.

According to MOHRE, all other employees who failed to register before the October 1 deadline will get a Dh400 fine. There is also a fine of Dh200 for subscribers who failed to pay their insurance premiums for more than three months. MOHRE said no new work permits will be issued to the employee until the fines are paid.

Here’s all you need to know

How to subscribe to UAE unemployment insurance?

You can go to the Insurance Pool’s website (www.iloe.ae). Other channels available for subscription include the Insurance Pool’s app (IOLE), kiosks, business service centers, money exchange centers, and bank smart apps, as well as SMS and telecom bills.

Subscribing to the scheme online can be done in four steps – visit www.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 MOHRE get the insurance?

Yes. Employees can register by choosing “Non-Registered in MOHRE” from the menu. Companies not registered with MoHRE “can also subscribe on behalf of their employees” and submit their trade licence along with a request letter to companyreg@iloe.ae

How much is UAE unemployment insurance?

For those with a basic salary of Dh16,000 or less, the insurance premium is set at Dh5 per month (Dh60 annually). For those with basic salary exceeding Dh16,000, the insurance premium is Dh10 per month (Dh120 annually).

Who pays for it?

The employee must pay for his or her own insurance policy. The premiums can also be deducted from an employee’s salary, gratuity, or other payment method.

When can I claim insurance coverage and how much will I get?

If you lost your job, then you can get a monthly compensation for up to three months. Those with a basic salary of Dh16,000 or less who paid the insurance premium of Dh5 per month for 12 months can get a maximum monthly compensation of Dh10,000 per month for three months when they claim their insurance. For those with basic salary exceeding Dh16,000, the monthly compensation is up to Dh20,000 per month for three months.

How do you claim UAE unemployment insurance compensation?

The insurance compensation can be claimed as long as the insurer (employee) has subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The claim can be submitted within 30 days of job loss and will be processed within two weeks of submission. The insured’s right to compensation is forfeited if he or she cancels their residency and leaves the country, or joins a new job, within the processing period.

How is insurance compensation calculated?

The compensation is calculated at the rate of 60 percent of the average basic salary for the last six months before unemployment and paid for a maximum of three months for each claim from the date of unemployment.

What are the penalties related to unemployment insurance?

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. ICA/Expat Media


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