The clock is ticking for UAE nationals and residents as the deadline to enroll in the country’s new mandatory Unemployment Insurance Scheme rapidly approaches.
The scheme was launched earlier this year, and initially had a deadline of June 30, 2023. However, the Ministry of Human Resources and Emiratisation (MoHRE) extended the deadline by three months to October 1, 2023, to allow employees more time to sign up.
Deadline Extension
The extension was granted to provide employees with additional time to register for the Involuntary Loss of Employment (ILOE) Scheme. Those who fail to register by the extended deadline face fines of Dhs400.
The ILOE scheme, a form of social security, offers workers up to three months of compensation if they lose their jobs.
Who Can Apply?
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.
Registration can be done via seven channels, including the Dubai Insurance website portal, Al Ansari Exchange, or government business centres (Tawjeeh or Tasheel).
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.
To claim the benefits, employees must pay the monthly premium for at least 12 consecutive months.
Compensation is calculated based on the individual’s salary and is paid for no more than three months from the date of unemployment.
The compensation is calculated at up to 60 percent of the employee’s salary, with a maximum claim benefit of Dhs10,000 per month for Category A workers and Dhs20,000 per month for Category B workers.
Penalties for Non-Enrollment
As per Cabinet Resolution No. 97 of 2022, employees who fail to subscribe to the UAE unemployment insurance by 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 less than a week left to enroll, it is crucial for all eligible employees to take advantage of this scheme and avoid potential fines.