However, employees in the country can still sign up for the job loss scheme until June 30. Following this grace period, an AED400 fine will be imposed for non-subscribers. Employees missing an installment for the UAE unemployment insurance will be fined AED200.
All subscribing employees will be met with security during job loss due to reasons other than disciplinary action or resignation until they find a new job, the ILOE website reads.
Eligible employees will be compensated with a monthly cash benefit up to 60 percent of their average basic salaries, of the six months prior to job loss.
However, cash benefit will be provided for a maximum of three months only if the worker has consistently paid their premiums for 12 months before receiving the benefit.
Employees in the private sector, federal government sector and those working in freezones are eligible for unemployment insurance.
Here is how you can apply for the UAE unemployment insurance scheme:
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.
Since the job loss insurance for employees was announced in January, over two million employees have subscribed to the scheme.
Who are exempt from the UAE unemployment insurance?
- Investors (owners of companies they work at)
- Domestic helpers
- Temporary-contract workers
- Juveniles under the age of 18
- Retirees who are entitled to a pension and joined a new job
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