The United Arab Emirates (UAE) has issued a final reminder to its citizens and residents about the impending deadline for enrollment in the country’s new mandatory Unemployment Insurance Scheme. The scheme was launched earlier this year, and initially had a deadline of June 30, 2023. However, to provide employees with more time to register, the deadline was extended to October 1, 2023.
Extension of Deadline
The Ministry of Human Resources and Emiratisation (MoHRE) announced the extension of the deadline by three months. This decision was made to allow employees ample time to sign up for the insurance scheme and avoid potential fines.
Before extension, individuals who failed to register for the Involuntary Loss of Employment (ILOE) Scheme before June 30 were liable to face fines of Dhs400.
ILOE Scheme
The ILOE is a form of social security designed to provide workers with up to three months of compensation if they lose their jobs. The scheme came into effect on January 1, 2023, with a grace period of six months that was due to end on June 30, 2023. This grace period has now been extended to October 1, 2023.
Who Can Apply?
According to the Dubai Insurance website, the scheme applies to all Emirati and foreign workers in both the private and public sectors. Employees working in free zones are also eligible to register.
How to Apply
Eligible employees can subscribe via seven channels including the Dubai Insurance website portal, or by visiting their nearest Al Ansari Exchange or government business centres (Tawjeeh or Tasheel). Applicants must have their Emirates ID number and UAE mobile number ready.
Cost and Compensation
The cost of the UAE Unemployment Insurance scheme varies based on the worker’s basic salary. Workers earning Dhs16,000 or less will need to pay a monthly insurance premium of Dhs5, while those earning more than Dhs16,000 will need to pay Dhs10 per month.
Compensation is calculated based on the individual’s salary and will be paid for no more than three months from the date of unemployment.
Non-Enrollment
As per Cabinet Resolution No. 97 of 2022, UAE employees who fail to subscribe to the UAE unemployment insurance by the extended date of October 1 will be required to pay a fine of Dhs400 imposed by the Ministry. Additionally, a fine of Dhs200 will be levied if the insured fails to pay the prescribed insurance premiums for more than three months.
With just ten days left until the deadline, UAE nationals and residents are urged to take immediate action to avoid penalties.