Over 6.5 million employees have enrolled in the Unemployment Insurance Scheme in the UAE between January 1st and October 1st, 2023, according to the Ministry of Human Resources and Emiratisation (MoHRE). To ensure compliance, the Ministry imposes a AED400 fine on workers who fail to register for the scheme, which can be checked through MoHRE’s app, website, or Business Service Centres.
MoHRE encourages those eligible to register, noting that it is the employee’s responsibility to enroll, although employers can assist. There are no additional costs for employers. This initiative aims to attract global talent and ensure financial security for UAE’s workforce.
To enroll in the Unemployment Insurance Scheme in the UAE, you need to follow a set of steps. This program is designed to provide financial support to eligible individuals in case of unemployment. Here’s a detailed explanation of the enrollment process:
Step 1: Eligibility Check Before enrolling, make sure you are eligible for the Unemployment Insurance Scheme. This scheme is available to UAE nationals and residents working in the private and federal government sectors. It excludes certain categories, such as investors (business owners who manage their establishments), domestic workers, temporary employees, minors under the age of 18, and retirees who receive a pension and have joined a new employer.
Step 2: Registration
- Visit the Insurance Pool website (www.iloe.ae).
- Download the ILOE smartphone application if you prefer a mobile option. Android, iOS
- Utilize designated physical kiosks available for registration.
- You can also register at business service centers.
- Some exchange companies, like Al Ansari Exchange, facilitate registration.
- Use your bank’s smartphone application for registration.
Step 3: Choose Your Category The Unemployment Insurance Scheme has two categories based on your monthly basic salary:
- First Category: If your basic salary is AED16,000 or less, you will pay an insurance premium of AED5 per month (AED60 annually). The maximum monthly compensation you can receive is AED10,000.
- Second Category: If your basic salary exceeds AED16,000, you will pay an insurance premium of AED10 per month (AED120 annually). The maximum monthly compensation for this category is AED20,000.
Step 4: Subscription Period Your right to claim insurance compensation is valid if you have been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months.
Step 5: Conditions for Compensation You can claim compensation as long as you meet the following conditions:
- You have not been terminated from your job for disciplinary reasons.
- You have not voluntarily resigned.
- The compensation amount is calculated at 60% of your average basic salary in the last six months before unemployment.
Step 6: Application Processing Your claim for compensation will be processed within two weeks of submission.
Step 7: Monitoring and Alerts Keep track of your enrollment and any fines associated with non-enrollment using the Ministry of Human Resources and Emiratisation (MoHRE) app, website, or Business Service Centres.
It’s important to note that while employers can help facilitate registration, it is ultimately the employee’s responsibility to enroll. Employers do not incur any additional costs for employee enrollment.
The Unemployment Insurance Scheme aims to provide financial support to citizens and residents in the UAE during periods of job loss, and it also plays a role in attracting and retaining top global talent in the UAE labor market.