The UAE requires all employees to sign up for the mandatory unemployment insurance scheme. Those failing to subscribe by the June 1 deadline will face fines following the one month grace period, ending June 30.
The mandatory job loss insurance is applicable for all employees in the UAE, including freezone and semi-government workers.
The insurance scheme is divided in two categories – Category A, for those who earn a salary below AED16,000 and Category B, for those who earn over AED16,000. The insurance starts at a cost as low as AED5, with a coverage up to AED60,000.
Here are the steps to subscribe to the unemployment insurance:
Step 1: Registration
- Under the ‘Registered User’ tab on the mobile app, select from either ‘Private’ or ‘Federal Government’. Freezone employees must choose the ‘Non-Registered in MoHRE’ button.
- Next, click on ‘Create an Account’ under the ‘Login’ button. A sign up page will appear.
- Enter your name, e-mail address, mobile number, and your Emirates ID number. Click on register.
- You will then receive an e-mail with an ILOE generated password on the registered e-mail address.
- Enter the password on the ILOE app page. You will then be redirected to another page which will ask you to change your password. Once your password has been changed, login using your new password under the ‘Registered User’ tab.
- Click on the ‘Non-Registered in MoHRE’ button before logging in.
Step 2: Entering details
- Enter your details – worker name, gender, date of birth, company name, passport number, basic salary, and nationality. The ‘category’ section will be automatically generated once you enter your salary.
- Before submitting your details, attach a scanned copy of your Emirates ID, Work Visa, or Residency Visa.
- Once you have submitted your details, your policy will be generated – either one year or two year.
Step 3: Buy your policy
- Under the one year policy, you can choose four options – Monthly policy, Quarterly Policy, Semi Annual Policy and Annual Policy.
- You can also buy an insurance policy for two years, which amounts to AED126, with 0 installments.
It is worth noting that the subscriber is only eligible for the compensation if they have signed up for the insurance for a period of at least 12 months.
However, prior to the 12 month period, compensation will not be provided in the case of job loss. Compensation payments are made for a maximum time period of three months, per claim, starting from the date of unemployment.
Fines for employees who have not subscribed will be AED400, whereas the fines for missing payment of the installment premium will be AED200.
Moreover, those who have lost jobs due to fraud, deceit, complains, non-peaceful labour strikes or stoppages or working in a fictitious organisation will not be eligible for the job loss compensation amount.
All you need to know about UAE Unemployment Insurance
- Deadline: Six months until June 30. Workers who change their visa or begin work in the UAE after January 1, 2023, will have a grace period of four months
- Fine for non-subscription: AED400
- Fine for missing installment premium: AED200
- Exempted categories: Investors/company owners, domestic helpers, temporary contract workers, juveniles and retirees
- Subscription channels: Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS
- Minimum subscription period: 12 months for eligibility of pay-out
- Maximum compensation: Three months
- Non-applicable: Fraud or deceit involved in his claim or if the establishment where they work for is fictitious, existing complaints, result of non-peaceful labour strikes or stoppages
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