Unemployment Insurance UAE

Everything to know about the Unemployment Insurance UAE Scheme

The Unemployment Insurance UAE scheme is an essential program that came into effect on January 1, 2023, by the Ministry of Human Resources and Emiratisation. It is something that must be complied with by all foreign employees, as well as Emiratis, working in both public and private sectors. For those employees who are working in the free zone areas, they are advised to register for the unemployment insurance program as well. This scheme is more or less a form of social security insurance that provides financial aid to employees at the time of losing their job due to termination. 

This financial support is given to the employee in the form of a monthly insurance premium, which is paid by the employee during their employment phase. There was also a rule for the employees to subscribe to the job loss insurance scheme by June 30, 2023, if not it will result in unemployment insurance UAE fine of 400 AED. This system comes with the hope of giving residents, as well as Emiratis, a very relaxed life, away from potential financial risk. Let us know more in detail about the unemployment insurance scheme in UAE. 

How to Receive Compensation After Job Loss?

  • If you have recently lost your job, you will be required to go through certain procedures. 
  • Insured employees who have lost their jobs should submit a claim which can be sent through three approved claim channels.
  • These channels include the insurance pool’s e-portal, and smart application, as well as through call centre
  • It is important to submit the claim within 30 days of losing the job or getting terminated. 
  • There are specific terms and conditions that you must read and be fully aware of before proceeding with your claim 

Who needs to subscribe to it? 

All private as well as government employees are expected to subscribe or do unemployment insurance UAE registration.  However, there is an exception and a list of categories that are not eligible for the same. 

  • Any investor, or a business owner who is running the entire business on its own, basically a sole proprietorship
  • Any labor or domestic worker 
  • Any Juvenile who is under the age of 18
  • Any pension-receiving retirees who have been employed by a new company
  • Contractual workers, as well as employees who are freelancers, working temporarily

How will employees as well as the residents benefit from it?

  1. The employee is instructed to visit the insurance website and take the policy for themselves by paying a premium amount. 
  2. To subscribe, individuals are advised to visit the ILOE Insurance Pool website, and they can also access the app. 

If you have delayed in paying the fine, you will be required to see an unemployment insurance UAE fine check online.

How does this compensation work?

The compensation amount for insurance is based on the average salary or basic salary of the employee in the last 6 months, before job loss.

Employees having a basic salary of around 16000 or less will be eligible to get the maximum benefit of up to 10,000 AED compensation monthly.

Those who have a basic salary that goes more than 16,000 will receive a monthly compensation of a maximum of 20,000 AED.

This compensation will be paid to the employee, for a maximum of three months consecutively. This is till they find a new job.

Is the Employer Involved in This?

This is solely the responsibility of the employee to subscribe to the policy of Unemployment Insurance and E and handle everything on their own. The employer is not responsible for giving instructions or paying for the policy on your behalf. There is no obligation for the employer to pay the premium or withhold the amount of premium from your salary as well.

However, it is highly recommended for employers to keep an update, and inform their employees about this mandatory job loss insurance program.

Eligibility for Employment Scheme in UAE

Employees are eligible to gain unemployment insurance UAE benefits if they have worked in an organisation they have subscribed to the insurance program for a year.

Before they get dismissed, or terminated from the job, they must have paid the premium for about 12 months to take the benefit of it.

Employees who are working on a commission basis can also subscribe to it

However, those employees who have just started a new job, or have left the country after their work permit was cancelled are not eligible for it.

Enrol Yourself Now

This unemployment insurance UAE is a scheme that helps many individuals during their time of unemployment. They ensure that their basic needs are met and that they have some money flowing to move and find a new job. It also increases the competitiveness of Emiratis in the market, by aiding financial support and reducing the burden of job loss, and fear. Now that you know exactly the benefit of it, what are you waiting for? It is time that you make the right decision and enrol yourself into it. It is time that you think rationally and give yourself the desirable security and support during the time of job loss.

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