Unemployment Insurance UAE: Everything You Need to Know

Are you an Emirati or a resident in the UAE? Wondering about the financial support available in case of job loss? Look no further! The Unemployment Insurance scheme has got you covered.

Designed to ensure a decent living for the unemployed, this scheme aims to attract and retain international talent as well. It’s simple – as a worker, you’ll pay a monthly insurance premium to access the benefits.

However, note that the scheme has some exclusions. Read on to learn more about the cost, subscribing, and claiming process for Unemployment Insurance in the UAE.

What is the Unemployment Insurance Scheme UAE?

According to MOHRE “Federal Decree-Law No. 13 of 2022 Concerning Unemployment Insurance Scheme”

The Unemployment Insurance Scheme in the United Arab Emirates (UAE) is a mandatory social security program that provides financial support to employees who lose their jobs involuntarily.

The scheme was launched on January 1, 2023, and applies to all Emirati and expatriate employees in the public and private sectors.

Overview of the Unemployment Insurance Scheme

To understand the Unemployment Insurance scheme in the UAE, you need to know about the coverage and eligibility criteria.

The scheme provides financial support to Emiratis and residents in case of job loss, with the aim of ensuring a decent living for the unemployed and attracting and retaining international talent.

All workers in the private and federal sectors, except for specific categories such as investors and business owners managing their own businesses, are eligible for coverage. However, the scheme doesn’t cover domestic workers, temporary employees, or juveniles under 18. Retirees receiving pensions and joining new employers are also exempt.

The cost of subscription varies based on the worker’s basic salary, ranging from AED 5 to AED 10 per month, with corresponding compensation caps.

Workers can subscribe through the ILOE Insurance Pool website and app, and penalties, including fines for non-subscription and late premium payments, are imposed for failure to comply with the scheme.

Eligibility for unemployment insurance scheme

To be eligible for unemployment benefits, employees must have been insured for at least 12 continuous months prior to their job loss and must not have been dismissed for disciplinary reasons.

Eligible employees will receive a monthly cash benefit equal to 60% of their basic salary, up to a maximum of AED 10,000 for Category A employees and AED 20,000 for Category B employees. The benefit is paid for a maximum of three consecutive months for each claim.

Scope of the Scheme: Included and Excluded from UIS

What categories are excluded from the scope of the Unemployment Insurance scheme in the UAE?

• Investors and business owners who manage their own businesses.
• Domestic workers.
• Temporary employees.
• Juveniles under 18 years old are NOT eligible for unemployment benefits.
• Retirees who receive pensions and join new employers are also exempt from the scheme.

Here’s the information presented in a structured table for better clarity:

Scope of the Scheme	Eligible Categories	Excluded Categories
Private and federal sectors	All workers except specific categories	Investors, business owners, domestic workers, temporary employees, juveniles under 18, retirees receiving pensions and joining new employers

Subscription Cost of Unemployment Insurance Scheme

You can determine the cost of the subscription for the Unemployment Insurance scheme based on your monthly salary. The cost varies depending on your income level, with different rates for different salary ranges.

Here’s a breakdown of the cost of a subscription:

• If your basic salary is AED 16,000 or less, you’ll pay AED 5 per month. The maximum compensation you can receive in this category is AED 10,000 per month.
• If your basic salary exceeds AED 16,000, you’ll pay AED 10 per month. The maximum compensation you can receive in this category is AED 20,000 per month.

Category A: Basic Salary 16,000 AED or Below

Basic Salary	Subscription Cost	Compensation Benefit	Maximum Duration
16,000 AED or Below	5 AED + VAT/Month	Up to 10,000 AED/Month	Up to 3 Months/Claim

Category B: Basic Salary Above 16,000 AED

Basic Salary	Subscription Cost	Compensation Benefit	Maximum Duration
Above 16,000 AED	10 AED + VAT/Month	Up to 20,000 AED/Month	Up to 3 Months/Claim

These tables provide a clear breakdown of the subscription cost, compensation benefit, and the maximum duration of benefits for each category.

Compensation Benefits of Unemployment Insurance

The monthly compensation is calculated at 60% of the average basic salary from the six months immediately preceding the involuntary loss of employment.

Category A:

• Maximum monthly claim benefits: AED 10,000.

Category B:

• Maximum monthly claim amount: AED 20,000.
• Maximum compensation for a single claim: Three consecutive months.
• Maximum period of benefits: Throughout the insurance period, covering the entire work life of the insured in the United Arab Emirates. The total claim payment cannot exceed 12 monthly benefits, regardless of the number of claims submitted.

This structure ensures that insured individuals receive compensation based on their previous earnings while maintaining limits to prevent excessive payouts.

Accoring to UAE Article 6: Compensation Amount and Duration Federal Decree-Law No. 13 of 2022

• Monthly compensation equals 60% percent of the contribution salary.
• Compensation is provided for a maximum of three months from the date of unemployment, up to AED 20,000.
• Each claim allows for a compensation period of three months.
• The total coverage period within the insured’s employment in the UAE labour market should not exceed 12 months.
• Additional benefits can be discussed between the insured and the service provider.

Note:

• The policy period is flexible, offering options for coverage over either one year or two years.
• Please note that the full VAT amount is added to the first instalment or payment.

Ways to Get the Unemployment Insurance Policy Online?

The entities responsible for providing the Unemployment Insurance policy in the UAE are a group of nine national insurance companies, represented by Dubai Insurance Company. These companies form an insurance pool that ensures the smooth implementation and operation of the scheme.

1. Visit the Involuntary Loss of Employment Scheme (ILOE) website “https://www.iloe.ae/Default.aspx#“
2. ILOE Mobile App or ILOE IOS APP
3. Visit the Al Ansari Exchange Branches or from Al Ansari Exchange App
4. from Tawjeeh Centers in UAE
5. From TAS HEEL Centers in UAE
6. By Etisilate SMS and Telecommunication Bills by ID <space> Emirates ID number and send to “2120”
7. Upay Kiosks Machine Locations
8. MBME Kiosks Locations
9. Banking Apps and ATM Machines

National Companies Offering Insurance Policies

1. Dubai Insurance Company
2. Abu Dhabi National Insurance Company
3. Al Ain Ahlia Insurance Company
4. Emirates Insurance Company
5. National General Insurance Company
6. Orient Insurance
7. Oman Insurance Company
8. Orient UNB Takaful Company

The 8 national insurance companies work together to offer comprehensive coverage and manage the financial aspects of the policy. By pooling their resources and expertise, they’re able to provide a robust insurance policy that meets the needs of unemployed workers in the UAE.

Related: “How To Apply for Unemployment Insurance Scheme” | “How To Get an Affidavit Of Support In Dubai“

Payment Options For Unemployment Insurance

You can choose from various payment frequencies, including:

• Monthly
• Quarterly
• Semi-Annual
• Annual/Full

Select the option that best suits your preference and budget.

Filing for a Compensation Claim

To file a compensation claim for unemployment insurance in the UAE, simply submit your claim within 30 days of becoming unemployed. Once the claim is received, the insurance company has a two-week period to transfer the compensation to the insured’s account. It’s important to act promptly to ensure timely processing of your claim.

Here are three key steps to follow when filing a compensation claim:

• Gather required documents: Prepare necessary documents such as your Emirates ID, passport copy, visa copy, termination letter, and bank account details. These documents will be required to support your claim and facilitate the transfer of compensation.
• Complete the claim form: Fill out the compensation claim form accurately and provide all relevant information. Make sure to double-check the form for any errors or missing details before submission.
• Submit the claim: Once you have gathered the required documents and completed the claim form, submit your claim to the designated authority or insurance company. Ensure that you keep a copy of your claim submission for your records.

Note: Payment of compensation begins from the date of job loss and continues for a period of three months or until the individual secures new employment, whichever occurs earlier.

Eligibility Requirements

In order to qualify for compensation, the worker must have consistently paid the monthly premium for a minimum of 12 consecutive months.

Suspension of the Compensation

If you stop meeting the eligibility requirements, your unemployment insurance compensation will be suspended. This means that you’ll no longer receive financial support from the scheme. It’s important to understand the circumstances that can lead to the suspension of your compensation.

Here are three reasons why your unemployment insurance compensation may be suspended:

Condition	Requirement	Consequence
Failure to actively seek employment	You must actively search for new job opportunities.	Compensation suspension if you don’t actively seek employment.
Refusal of suitable job offers	Accept suitable job offers that match your qualifications.	Compensation suspension if you refuse without valid reasons.
Violation of program rules	Comply with all rules and regulations of the scheme.	Compensation suspension for violations like false information or fraud.

Failure to Subscribe and Pay for the Scheme

Effective from October 1, 2023, the UAE Government will implement fines (AED 400) for workers who fail to enrol in or adhere to payments for the Unemployment Insurance scheme. As Per “Ministerial Resolution Law UAE“.

If you don’t subscribe and pay for the Unemployment Insurance scheme, you may face penalties and lose access to financial support. The failure to subscribe or pay premiums for the scheme can result in fines. Non-subscription carries a penalty of AED 400, while late premium payments incur a fine of AED 200.

These penalties serve as a deterrent to ensure compliance with the scheme. Additionally, not subscribing to the scheme means that you won’t be eligible to claim compensation in case of unemployment. This can have severe financial consequences, as the Unemployment Insurance scheme provides much-needed support to individuals who’ve lost their jobs.

Penalties for Non-Subscription and Late Payments

You could face fines for failing to subscribe and pay for the Unemployment Insurance scheme in the UAE. It’s important to understand the penalties associated with non-subscription and late payments. Here are the consequences you may encounter:

• Non-subscription fine: AED 400.
• Late premium payment fine: AED 200.

To ensure compliance with the scheme, it’s crucial to subscribe and pay the monthly insurance premium on time. Failure to do so can result in these penalties, which can add financial burden on top of the already stressful situation of unemployment.

By adhering to the regulations and fulfilling your obligations, you can avoid these fines and ensure that you receive the necessary financial support when needed.

How to Check unemployment insurance fine in UAE?

There are two ways to check if you have an unemployment insurance fine in the UAE:

• Online:
  1. Go to the MoHRE website: http://eservices.mohre.gov.ae/ Or http://inquiry.mohre.gov.ae/
  2. Click on the “Unemployment Insurance” tab Or Choose “Fine Inquiry”
  3. Click on the “Check your unemployment insurance status” link.
  4. Enter your Emirates ID number or Unified Number and click on the “Submit” button.
  5. Your unemployment insurance status will be displayed on the screen. If you have a fine, it will be listed under the “Fines” section.
• Call Center:
  1. Call the MoHRE customer service hotline at Tel: 8006000.
  2. Select your language and press 1 for the unemployment insurance menu.
  3. Press 3 to speak to a customer service representative.
  4. Provide the representative with your Emirates ID number or Unified Number and ask them to check your unemployment insurance status.

If you have an unemployment insurance fine, you can pay it online through the MoHRE website or through the MoHRE app. You can also pay the fine at any MoHRE customer service center.

Please note that if you do not pay your unemployment insurance fine within three months of the due date, it will be deducted from your wages through the Wages Protection System (WPS) or from your end of service benefits, or any other method approved by MoHRE.

Objectives of the Unemployment Insurance Scheme

• Objective 1: Provide financial support to Emiratis and residents in the event of job loss.
• Objective 2: Ensure a decent living for the unemployed by offering temporary income.
• Objective 3: Attract and retain international talent by offering a safety net in case of unemployment.
• Objective 4: Assist individuals in meeting their basic needs and maintaining their standard of living during periods of unemployment.
• Outcome: Alleviate financial stress and promote social stability, contributing to the welfare of the workforce and strengthening the UAE’s overall economy.

Registration Process for the Scheme with ILOE Insurance Pool

To subscribe to the Unemployment Insurance scheme in the UAE, simply visit the ILOE Insurance Pool website or app. The subscription process is designed to be convenient and user-friendly, ensuring that you can easily access the benefits of the scheme.

Here’s a step-by-step guide to help you get started:

• Visit the ILOE Insurance Pool website or download the app from your app store.
• Create an account by providing the required personal information and documents.
• Select the subscription plan that suits your needs and financial situation.
• Make the payment for your monthly insurance premium, which can be done through various payment methods.
• Once your subscription is confirmed, you’ll receive a digital insurance card that you can use for future claims.

All steps with Images in PDF are there for Better understanding.

Deadline for Subscription

Effective from October 1, 2023, the UAE Government will implement fines (AED 400) for workers who fail to enrol in or adhere to payments for the Unemployment Insurance scheme. As Per “Ministerial Resolution Law UAE“.

If you don’t subscribe and pay for the Unemployment Insurance scheme, you may face penalties and lose access to financial support. The failure to subscribe or pay premiums for the scheme can result in fines. Non-subscription carries a penalty of AED 400, while late premium payments incur a fine of AED 200.

Unemployment Insurance in Free Zones

If you work in a free zone, you’re eligible for Unemployment Insurance coverage. The Unemployment Insurance scheme in the UAE aims to provide financial support to Emiratis and residents in the event of job loss, ensuring a decent living for the unemployed.

However, it’s important to note that the scheme doesn’t cover investors and business owners who manage their own businesses, domestic workers, temporary employees, and juveniles under 18. Additionally, retirees receiving pensions and joining new employers are exempt from the scheme.

The cost of a subscription varies based on the worker’s basic salary, with premiums ranging from AED 5 to AED 10 per month. Workers can subscribe through the ILOE Insurance Pool website and app, and claims must be submitted within 30 days of unemployment.

Failure to subscribe or pay premiums may result in fines of AED 400 for non-subscription and AED 200 for late premium payments.

Rights and Benefits Under the Scheme

Your rights and benefits under the Unemployment Insurance scheme include access to financial support and assistance in finding employment. Here are the key benefits you can expect:

Financial Support:

• If you become unemployed, you can receive monthly compensation for up to three months or until you find a new job, whichever happens first.
• The compensation amount depends on your monthly insurance premium and can be up to AED 10,000 or AED 20,000, depending on your salary.

Job Placement Assistance:

• The scheme helps you find suitable job opportunities through job portals, career counselling, and vocational training programs.

Skill Development Programs:

• You can access skill development programs to enhance your industry-specific skills and knowledge, making it easier to secure a job that aligns with your qualifications and interests.

Duration of Compensation Payments

Here’s the information provided in a more concise and clear format:

Claim Submission and Compensation Timeline:

• Workers must submit their claim within 30 days from the date of unemployment.
• Upon receiving the claim, the insurance company has two weeks to transfer compensation to the insured’s account.

Claims Processing:

• Insurance providers must process claims in line with the insurance policy terms and conditions and the applicable legislation of the Central Bank of the UAE.

Compensation Period:

• Compensation starts from the date of job loss and continues for three months or until the insured secures new employment, whichever occurs earlier.

Job Search Requirements for Receiving Compensation

To receive compensation under the Unemployment Insurance scheme in the UAE, you must actively search for jobs on a regular basis. This requirement is in place to ensure that you’re actively seeking employment opportunities and making efforts to reenter the workforce.

Here are three key job search requirements that you need to fulfill in order to receive compensation:

• You must actively apply for suitable job positions that match your skills and qualifications.
• You should attend job interviews and participate in recruitment processes when invited.
• You must keep a record of your job search activities, including the positions you apply for and the interviews you attend.

Support Programs for Unemployed Individuals

If you’re an unemployed individual in the UAE, you can benefit from various support programs. These programs aim to provide assistance and resources to help you during your job search and transition period.

One of the support programs available is job placement services. These services connect job seekers with potential employers by matching their skills and qualifications with job vacancies.

Additionally, there are training and skills development programs that can enhance your employability and help you acquire new skills that are in demand in the job market. These programs offer workshops, courses, and certifications in various industries.

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