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You are no longer concerned about the financial losses that accompany unemployment. With the introduction of the new Unemployment Insurance Scheme UAE in 2024, the nation has you covered. As of this year, every working person is required to register for the new Unemployment Insurance Scheme UAE.

Also called Job Loss Insurance, it is required for expats and Emiratis who live and work in the UAE. If someone does not enroll in the jobless insurance UAE program, they will be penalized. This new rule is applicable to persons working in both the government and private sectors.

Types of Unemployment Insurance Scheme UAE 

In the UAE, unemployment insurance is divided into two schemes:

For employees earning less than AED 16,000 a month:

Monthly premium rate: AED 5

Annual premium rate: AED 60

Compensation: Up to AED 10,000 per month

For workers earning more than AED 16,000 per month:

Monthly premium rate: AED 10

Annual premium rate: AED 120

Compensation: Up to AED 20,000 per month

Exemptions Apply to the Unemployment Insurance Scheme UAE

The following groups of people are not covered by the jobless insurance UAE: 

• Children under the age of 18

• Individuals working as domestic help

• Short-term contract workers

• Business owners

• Investors

• Senior persons in retirement with pension rights and employment

Benefits of Registering for the UAE Unemployment Insurance Scheme

The advantages of the jobless insurance UAE scheme will end three months from your last day of employment, even if you have found a job elsewhere.

• Ensures financial security in the event of a job termination.

• In the event that you lose your employment, you will be entitled to three-month financial compensation.

• You will get compensation for three months equal to sixty percent of the basic pay you were receiving during the final six months of your employment.

• Improves career security without requiring any payment from the company.

• Without having to worry about not getting paid, you may focus on finding your next job.

Scenarios in Which Insurance Claims for Involuntary Loss of Employment Will Not Be Applicable

The following claims are not applicable to the UAE unemployment insurance scheme:

• If the worker has willingly terminated their employment contract 

• If disciplinary reasons led to the termination of the employment contract

• If the worker has left the nation

• If you fail to submit the insurance claim within a month you lose your employment

• Should the subscription fees remain unpaid for a continuous period of twelve months

Unemployment Insurance UAE and How to Apply

Direct apply: Using their mobile app or the Involuntary Loss of Employment (ILOE) website, you can instantly apply for the UAE unemployment insurance scheme. Employees can sign up through the ILOE Insurance Pool app, website, or any other channel that MoHRE may announce.

Apply via other channels: You can also register via bank ATMs, business service centers, kiosks, Etisalat or Du telecom firms, and Al Ansari Exchange centers.

FAQs

• Do I qualify for benefits under the unemployment insurance scheme UAE?

The jobless insurance UAE promises that qualified workers get sixty percent of their basic pay in the event of unemployment. Nevertheless, you will only be eligible for the compensation if you have paid the subscription fee for a continuous 12 months. You lose your right to receive this compensation if you travel abroad or take a job elsewhere.

Note: The person insured by the unemployment insurance policy is referred to as the "Insured" below. 

The criteria to qualify for benefits under the unemployment insurance scheme UAE are as follows:

• The insured is currently employed in the nation.

• For three successive months, the insured has paid the premiums on time, without missing a payment or interruption in subscription.

• The insured has completed the required minimum subscription period of 12 months in a row or a full year.

• The insured has not had any complaints about their job, particularly in regard to absences from work.

• The insured's voluntary resignation is not the reason for their unemployment.

• The insured's unemployment is not attributable to disciplinary or legal issues recorded under the Human Resources or Labor Relations laws.

• Whether or not the insured caused harm, their participation in strikes is not the reason for their unemployment.

• Within thirty days after the date of unemployment or labor complaint settlement, the insured has submitted a claim.
  
  

• Who is not qualified to receive compensation under the jobless insurance UAE program?

Resignation is the reason for unemployment, and disciplinary issues are the basis for termination, which prevents an individual from getting compensation. They won't get paid if it turns out that the claim is fraud or that the company they work for is fictional. Furthermore, the program mandates that job loss cannot be attributed to acts of violence, strikes, terrorism, or environmental damage.

• How is the amount of compensation calculated?

Following verification, cash compensation will be provided for each claim that has been registered. By taking sixty percent of the basic salary, the monthly payout sum will be determined. For a period of three months, or until the person finds another job, the financial compensation will be paid.

• When will I receive my compensation?

The compensation payment will be two weeks from the date of claim registration. Additionally, the money will only be received for a three-month period.

• How do I submit an unemployment insurance scheme UAE claims?

The claims must be registered via the ILOE-Involuntary Loss of Employment e-portal, their mobile application, or their call centers within thirty days of the last day of employment.

• Is there an application fee for a jobless insurance UAE subscription?

If you apply directly through the websites of Dubai Insurance or ILOE, there is no application fee. However, you could have to pay an extra service fee if you apply through banks, exchange centers, or other firms.

• How much is the premium for unemployment insurance that I have to pay?

Unemployment insurance can be obtained by individuals for as low as 5 AED each month. Workers making less than AED 16,000 a year are required to pay a premium of AED 5 per month or AED 60 annually. A premium of AED 10 per month or AED 120 annually is required for workers earning more than AED 16,000 annually. Five percent VAT is applied to the premium value.

• What is my entitlement to cash compensation in the event that I lose my job?

You can be entitled to benefits up to 60% of your basic pay, or AED 10,000 per month, if your base wage is less than AED 16,000. You may be eligible for compensation up to 60% of your basic pay, or 20,000 AED per month if it exceeds 16,000 AED.

• What is the penalty for failing to register for unemployment insurance benefits?

If employees do not register for the unemployment insurance scheme UAE, they will be fined AED 400. Employees who fail to pay their subscription fees for more than three months will be charged an extra AED 200.

• Will my employer register for UAE unemployment insurance scheme benefits?

Employees must individually register for unemployment insurance. Employers are not required to register on their behalf or to pay their premium fees.

• When must I pay the premiums for my job loss insurance?

The premium fees may be settled at the end of each year, every six months, quarterly, or monthly. A job loss can be extremely stressful and lead to a great deal of concern about the future. During this period, the unemployment insurance scheme UAE is a comfort. It promises that jobless people can maintain a sufficient standard of living until they secure new employment. Make sure you are completely aware of unemployment insurance UAE and how to apply methods as mandated by UAE law.