With the deadline for the UAE’s mandatory unemployment insurance scheme only two days away, individuals who fail to subscribe before Thursday, 1 June will face fines after the one-month grace period ending on 30 June.
The job loss insurance scheme applies to all employees in the UAE, including Freezone and semi-government workers.
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How to apply?
To apply for the mandatory insurance scheme, applicants need to visit the iloe.ae website, click “subscribe here” to access the registration page and select their relevant employment sector.
Applicants must fill in the required personal identification data, and phone number, and enter the verification code sent via SMS.
Individuals can then select their preferred payment intervals (monthly, quarterly, semi-annual, or annual) and enter their email addresses.
Once all the necessary fields are completed, they can proceed to the payment gateway to complete the registration.
Subscription costs and deadlines
The subscription packages are priced at AED5 per month for those earning a basic salary of AED16,000 or less, and AED10 per month for those with a salary higher than AED16,000.
It is crucial that all employees subscribe to the scheme by 30 June. However, individuals who change their visa or begin work in the UAE after 1 January 2023, will be granted a grace period of four months.
Penalties for non-compliance
Those who fail to subscribe to the unemployment insurance scheme by the deadline will face a non-subscription fine of AED400. Additionally, employees who miss an installment premium will be liable for an AED200 fine.
Investors and company owners, domestic helpers, temporary contract workers, juveniles, and retirees are exempted from the mandatory scheme.
Subscription methods
Employees can subscribe to the insurance scheme through various channels, including the Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centres, money exchange companies, du, Etisalat, and via SMS.
Who is eligible?
To be eligible for compensation, insured individuals must meet certain criteria outlined by the Insurance Pool website, including a minimum subscription period of 12 consecutive months without any interruption for three consecutive months.
The insured should pay all insurance premiums on time and must prove that their unemployment is not due to resignation.
Compensation is not applicable if the insured is dismissed for disciplinary reasons or has an existing complaint related to absenteeism.
Fraudulent claims, employment at fictitious establishments, and unemployment caused by non-peaceful labour strikes or stoppages are also not eligible for compensation. Moreover, insured individuals must be legally present in the UAE.
With the impending deadline, employees are mandated to subscribe to ensure compliance with the UAE’s mandatory unemployment insurance scheme and avoid potential penalties.
