UAE unemployment insurance scheme

Please be informed that as of January 1st, 2023, the UAE Government has initiated the Unemployment Insurance Scheme.

In this scheme, ALL EMPLOYEES working in the private and public sectors are required to register and contribute to the Involuntary Loss of Employment (ILOE).

The UAE Unemployment Insurance Scheme is designed to provide financial support for a limited period if the insured employee loses their jobs due to reasons other than disciplinary action or resignation.

The eligible employees will be compensated with a monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to loss of employment. Cash benefit shall be provided for maximum 3 consecutive months for a claim only for the workers who pay the monthly premium for at least 12 consecutive months.

To support you in this process, we are happy to provide you with the below key information which will guide you through the registration to the Unemployment Insurance Scheme:

1.      The unemployment insurance policy is MANDATORY. You must have a valid Emirates ID and an active mobile number to register. If your labour card is active at the time of registration, you can start contributing immediately.

2.      It is the employee’s responsibility to register in the scheme and must do so by latest by June 30, 2023, to avoid being fined.

3.      Failure to register, will result in a penalty of AED 400 which would be borne by the employee.

4.      The scheme proposes 2 categories of products:

a.      Category A – Employees earning a basic salary equal to or less than AED 16,000 must pay a monthly insurance of AED 5 (plus VAT) per month.

b.      Category B – Employees earning a basic salary of more than AED 16,000 must contribute AED 10 (plus VAT) per month.

5.      Note that a fine of AED 200 will apply on the employee failing to pay the monthly contributions for more than three (3) months.

6.      You can subscribe or registered through the following portals:

a.       ILOE portal www.iloe.ae

b.      ILOE Mobile APP

c.       Al Ansari Exchange

d.      Telecommunications Bills

e.      SMS

f.       Bank App

g.      Business Centers

h.      Kiosks (UPAY) and ATMs (C3 PAY)

Four (4) payment plans are available: Monthly, Quarterly, Semi-Annually and Annually.

8.      Documents needed:

a.      Emirates ID or Unified Number

b.      Valid UAE Mobile Number (+971 5X XXX XXXX)

9.      The following categories are exempted from the unemployment insurance scheme:

a.      Domestic Helpers

b.      Part-time / Temporary – contract workers

c.       Juveniles under the age of 18

d.      Retirees who are entitled to a pension

e.      Employees working in freezone

For further information on the scheme, please visit www.iloe.ae,  or call 600 599 555.

We encourage everyone to register at the earliest to avoid fines and invite you to read carefully the attached documentation, including the Step-by-Step guide we prepared for you.

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