Picture for illustrative purposes only.
PHOTO BY ARCHIVE
Under the UAE’s mandatory unemployment insurance scheme, employees who incur fines will not be able to get a new work permit until the fines are cleared.
According to the ministerial resolution, the “employee will not be eligible for a new work permit until all due fines are paid within the specified timeframe”.
Job loss 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. The deadline to subscribe to the scheme is October 1.
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. The premiums can be deducted from an employee’s salary, gratuity, or other payment method.
The Insurance Pool’s website (www.iloe.ae) is the preferred channel for majority of subscribers to date. Other channels available for subscription include the Insurance Pool’s app (IOLE), kiosks, business service centers, money exchange centers such as Al Ansari, 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.
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
For those with a basic salary of Dh16,000 or less, the insurance premium is set at Dh5 per month (Dh60 annually), and monthly compensation capped at Dh10,000 per month when they claim their insurance. For those with basic salary exceeding Dh16,000, the insurance premium is Dh10 per month (Dh120 annually) with a monthly compensation of up to Dh20,000 when they claim their insurance.
The employee must pay for his or her own insurance policy.
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.
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.
Those exempted from subscribing include investors – the owner of the facility in which he or she works, domestic helpers, employee with a temporary employment contract, juveniles under 18 years of age, and a retiree who receives a retirement pension and has joined a new job. ICA/Expat Media
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