Step-by-Step: UAE Unemployment Insurance Scheme 2023

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You can NOW subscribe to the Unemployment Insurance Scheme (MANDATORY SUBSCRIPTION) if you’re an employee in the federal government or the private sector which is available to both UAE citizens and expatriates. Federal Decree-Law No. 13 of 2022 concerning the…

by | Jan 2, 2023 | 0 comments

You can NOW subscribe to the Unemployment Insurance Scheme (MANDATORY SUBSCRIPTION) if you’re an employee in the federal government or the private sector which is available to both UAE citizens and expatriates.

Federal Decree-Law No. 13 of 2022 concerning the Involuntary Loss of Employment (ILOE):
A form of insurance that provides financial support for a limited period of time in the event of unemployment in exchange for a portion of the worker’s/employee’s contributions in accordance with this Decree-Law and pursuant to the decisions of the UAE Cabinet in this regard.

As per the Ministerial Resolution No. 604 of 2022 regarding the Involuntary Loss of Employment (ILOE), the eligible employees have a grace period of 6 months (till 30 June 2023) to subscribe to the ILOE. Also please note that if the insured/worker was employed at a date later than Jan 01st, 2023, he will have a grace period of 4 months to subscribe, starting from the day he landed in the UAE or Visa Change Status.

What is the UAE Unemployment Insurance scheme?

The UAE Unemployment Insurance scheme is a type of insurance/social security that offers financial assistance to Emiratis and residents working in the government and private sectors who lose their jobs due to termination by their employers.

The financial assistance will be provided in exchange for the worker paying a monthly insurance payment during his job.

Who are Eligible to Subscribe to the new Unemployment Insurance scheme?

Emiratis and Residents working in the federal government and private sectors.

What are the exempted categories?

  • Investors (owners of companies they work at)
  • domestic workers
  • Temporary-contract workers
  • Juveniles under the age of 18
  • Retirees who are entitled to a pension and joined a new job
  • Employees working in the Free Zones are currently exempted

What are the benefits that the Unemployment Insurance scheme offers and the Compensation Calculation?

What is the Subscription Cost?

  1. Employees with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, i.e. AED 60 annually. The compensation for this category must not exceed a monthly amount of AED 10,000.
  2. Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually. The compensation for this category must not exceed AED 20,000 monthly.

An employee may pay the premium monthly, quarterly, half-yearly, or annually. Additional benefits may be subscribed to by the insured employee in coordination with the insurance company.

The value of the insurance policy is subject to VAT.

What are the Channels for subscribing and who are eligible for the insurance?

The scheme can be accessed via the Insurance Pool website and app (Dubai Insurance Company) and any other channel announced by MoHRE. 

You can subscribe to the Unemployment Insurance Scheme through 7 channels by paying a nominal amount and following easy steps. For more inquiries, call 600599555, visit http://iloe.ae or download the ‘iloe’ smart app

From 1 January 2023, federal employees and private sector employees must subscribe to the scheme.

What are the steps to subscribe to the new Unemployment Insurance Scheme?

HERE’S A STEP-BY-STEP GUIDE ON HOW TO SUBSCRIBE VIA INSURANCE POOL WEBSITE – www.iloe.ae:

  1. Visit www.iloe.ae
  2. Find the red button “Subscribe Here”, and click it.
  3. You will be redirected to the ILOE application portal. Select whether you are a private or federal government employee under the ‘Individual’ category.
  4. Sign in using your Emirates ID or UID number (Unified Identification Number), enter your mobile number, and tap on the ‘Request OTP’ button.
  5. Enter the OTP you receive, after which you will be redirected to your ILOE dashboard.
  6. The dashboard will show you whether you fall under Category A or Category B, under the scheme.
  7. You will see the summary of your details, which you need to review. Then tick the box which says “I confirm my personal details are correct”.
  8. Next, you can choose your ILOE plan – you will have the option to subscribe for one or two years. If you subscribe to the scheme for one year, you will also have the option of paying the premium monthly, quarterly, semi-annually, or annually.
  9. After you’ve created the plan, you’ll see the inception date, expiry date, insurance costs, and how much you’ll have to pay per month, quarterly, or annually.
  10. After reviewing, tick the “terms and conditions” box once you have selected your preferred option.
  11. Click on ‘Pay now’.
  12. The insurance certificate will be emailed to you once you enter your email address (optional).
  13. You will then be transferred to the online payment channel, where you will need to enter your credit card information.
  14. Following that, an OTP will be delivered to the phone number associated with your card. Enter the OTP for the payment to be processed.
  15. You will receive an insurance certificate through email once you have received payment confirmation. You may also log in to your ILOE dashboard and get a pdf version of your insurance certificate.

How to file a compensation claim?

An unemployment claim must be submitted within 30 days of the date of unemployment. After receiving the claim, the insurance company has two weeks to transfer the compensation to the insured.

Insurance providers must process insurance claims following the insurance policy terms and conditions and the UAE’s Central Bank’s legislation.

Upon losing his or her job, a compensation payment will be made for three months or until a new job is found, whichever comes first.

Any breach of insurance policy terms and conditions by insurance companies will be reported to MoHRE.

Compensation Suspension: 

The insured employee will lose his/her eligibility for compensation if any of the following situations occur:

SOURCE: MOHRE – Ministry of Human Resources & Emiratization

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👍Follow our blog to stay informed on the latest and most reliable updates from the UAE government. We regularly discuss company incorporation and structuring, visas, product registration, and other topics related to conducting business in UAE.

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