The UAE Unemployment Insurance scheme, also known as the Involuntary Loss of Employment (ILOE) scheme, is designed to provide financial assistance to UAE nationals and expatriates working in both the public and private sectors who lose their jobs due to circumstances beyond their control. Its aim is to ensure that those who are unemployed can maintain a decent standard of living while also maintaining the country's appeal as a destination for top talent in a knowledge-based economy.
Who is eligible for the UAE Unemployment Insurance Scheme?
The scheme is open to employees in both the public and private sectors, excluding individuals with investments, self-employed individuals, short-term employees, those under 18, and retirees receiving pensions from a new employer.
Is the UAE Unemployment Insurance Scheme Mandatory?
The majority of employees in the UAE are now required to join the scheme. However, there are specific prerequisites outlined in federal laws and cabinet resolutions that must be met to receive the monetary benefits.
What are the conditions to claim compensation under the UAE Unemployment Insurance Scheme (ILOE)?
To claim compensation, individuals must have been subscribed to the scheme for at least 12 consecutive months, paid all insurance premiums as required, provide evidence of unemployment not due to resignation, not have been dismissed for disciplinary reasons, submit a claim within 30 days of termination, not be subject to an absconding report, and meet other criteria.
How can you claim insurance under the UAE Unemployment Insurance Scheme?
Applications for compensation must be submitted to the Ministry of Human Resources and Emiratisation within 30 days of becoming unemployed. Once approved, payments are made by approved insurance providers within two weeks.
How can you subscribe to the UAE Unemployment Insurance Scheme?
Subscription to the scheme can be done through various channels including direct online platforms, exchange centers, kiosks, bank mobile applications, and Tawjeeh and Tasheel service centers.
How is the insurance payout calculated under UAE Unemployment Insurance Scheme?
Compensation is calculated at 60% of the basic salary, up to certain limits, and varies based on two categories: Category A for employees earning up to Dh16,000, and Category B for those earning above Dh16,000.
What are the entities that provide Insurance Policy?
There are nine national insurance companies under the Dubai Insurance Company that provide insurance policies for the scheme.
What do you do if you cannot subscribe to the UAE Unemployment Insurance Scheme?
If unable to subscribe, individuals can contact the Ministry of Human Resources and Emiratisation for assistance.
Can employers sign you up for the mandatory UAE Unemployment Insurance Scheme?
Employers can register employees for the scheme, but the cost is borne by the employee.
How to apply for the UAE Unemployment Insurance Scheme Online?
Employees can apply through the ILOE website using their Emirates ID and mobile number.
How does an employee know they are enrolled in the UAE Unemployment Insurance Scheme?
Upon completing the payment, employees receive an insurance certificate serving as proof of enrollment.
What are the fines and penalties for not subscribing to the UAE Unemployment Insurance Scheme or complying with the ILOE Policy?
Penalties include fines for failure to subscribe or pay insurance premiums on time, with non-payment potentially affecting work permits.
What happens to the UAE Unemployment Insurance Scheme when you change or switch jobs?
Insurance coverage remains intact, but changes in employment require updating permit card information.
How can Freezone employees register for the UAE Unemployment Insurance Scheme in Dubai?
Freezone employees can register online, with costs and compensation varying based on salary categories.
How can Free Zone Companies sign up their employees?
Companies can enroll employees by submitting required documents to the ILOE portal.
How much does it cost for employees?
Employees pay insurance costs based on job categories and can choose payment frequency. After payment, they receive a certificate of enrollment.
