Important reminder! 📢 The Ministry of Human Resources and Emiratisation has called on all employees to sign up for the mandatory unemployment insurance scheme. Failing to do so before the October 1 deadline can result in a Dh400 fine! And now, without further ado, it’s time to dive in and explore all the essential details.
Who Does This Apply To?
This scheme applies to all workers in the private and federal sectors, including both citizens and residents.
The following groups are excluded:
• Investors who own and manage their own businesses.
• Domestic workers.
• Temporary employees.
• Individuals under the age of 18.
• Retirees who receive a pension and have joined a new employer.
How Do I Register?
You can sign up for the Involuntary Loss of Employment (ILOE) Insurance Pool in multiple ways:
• Visit the ILOE Insurance Pool website.
• Use the ILOE smartphone application.
• Access kiosks, business service centers, exchange companies (like Al Ansari), and banks’ smartphone applications.
What’s the Compensation?
The insurance programme is separated into two categories:
- Individuals with a base salary of AED16,000 and below:
- Insurance fee: AED5 per month (AED60 annually)
- Maximum monthly compensation: AED10,000
- Individuals with basic salaries over AED16,000:
- Insurance fee: AED10 per month (AED120 annually)
- Maximum monthly compensation: AED20,000
What Else Do I Need to Know?
- Eligibility: Insured employees must have paid into the Unemployment Insurance Scheme for at least 12 consecutive months.
- Residency and Employment: If the insured leaves the country or starts a new job during the processing period, they forfeit their right to compensation.
- Claim Processing: Insurance claims are typically processed within two weeks after submission.
- Compensation Calculation: For eligible employees not terminated for disciplinary reasons or voluntary resignation, compensation is 60% of their average basic salary in the six months prior to unemployment.
- Duration of Compensation: The maximum compensation period is three months for each claim, starting from the date of unemployment.
With the October 1 deadline approaching, it is essential to take action to avoid a Dh400 fine. By signing up for this insurance, you not only protect yourself but also secure your future. Don’t delay, ensure your peace of mind and financial stability today. Act now and stay protected!
