UAE Unemployment Insurance Scheme-All You Need to Know

What is UAE Unemployment Insurance Scheme

The UAE is, without any doubt, one of the most people-centric nations. The government makes sure to give utmost importance to the welfare of its nationals and residents and hence always takes initiative for the wellbeing of its people. One such step in this regard is the commencement of the UAE Unemployment Insurance Scheme. The objective of this insurance plan is to safeguard the financial well-being of individuals employed in government and private sectors, providing support in case of job loss.

Mandatory Subscription for Employees

The Ministry of Human Resources and Emiratisation (MOHRE) has made it mandatory for all government and private sector employees to subscribe to the ILOE Unemployment Insurance Scheme. Those who do not subscribe to the insurance will be charged a fine of AED 400. Moreover, those individuals who have subscribed but fail to make regular payments will be charged a penalty of AED 200. 

Who is Exempted?

The UAE Unemployment Insurance Scheme does not apply to certain groups. These are as follows:

• Investors (company owners), 
• Domestic helpers
• Temporary-contract workers
• Juveniles under the age of 18
• Retirees who are entitled to a pension 

Policy Structure

The Ministry of Human Resources and Emiratisation (MOHRE) has collaborated with nine local insurance companies to establish the framework for the program. Employees are divided into two categories as per their pay bracket.  

Category A

Category A incorporates employees with a basic salary of up to AED 16,000. Their monthly contribution is AED 5 + VAT.

Category B

Category A incorporates employees with a basic salary exceeding AED 16,000. Their monthly contribution is AED 10 + VAT.

Compensation Criteria

In case of job loss, subscribed individuals may claim monthly cash compensation for up to 3 months per claim. The cash sum will amount to 60% of the basic salary but no more than AED 10,000 for Category A and AED 20,000 for Category B. Claims must be made within 30 days through designated channels. It can take up to two weeks for the compensation to process. 

Compensation Eligibility Criteria

To be eligible to get the insurance compensation, the employee must have worked and subscribed to the UAE Unemployment Insurance Scheme for a minimum of 12 months. However, individuals who resign, are terminated due to misconduct or indiscipline, or leave the UAE, become ineligible for any compensation.

Subscription Channels 

Direct Channels 

Employees can subscribe to Unemployment Insurance in the UAE through the ILOE Portal or ILOE Mobile App for Android/iOS without paying any additional charges. 

Other Channels 

Alternatively, the following channels can also be used to subscribe to Unemployment Insurance in the UAE. However, you may have to pay additional service charges for using these channels:

• Al Ansari Exchange 
• Kiosk machines 
• Telecommunication bills 
• Bank ATMs and applications 
• Businessmen service centers

Subscription Process through Portal 

Step 1: Visit ILOE’s official portal and on the Home Page, click Subscribe/Renew Here.

Step 2: Select the sector you work in and click Confirm. 

Step 3: Enter the required information and click Request OTP. 

Step 4: Submit the OTP you receive on your registered number. The portal will ask you to fill in some additional information and upload your identity document. 

Step 5: Once you complete this step, the system will take you to the payment screen. You can select your desired payment option and proceed. As soon as your payment is confirmed, you will receive your Certificate of Insurance through email. 

Note: The UAE Unemployment Insurance Scheme is to be subscribed by employees directly and employers hold no responsibility for it.