Be it in the private sector or public, all Emirati and foreign employees must subscribe to the UAE Unemployment Insurance Scheme. It is a mandatory program offered to employees working in free zones and they must be registered before the deadline. For your ease, this article contains all the information related to this scheme along with how to apply it, how it works, and much more.
Table of Contents
- 1 UAE Unemployment Insurance Scheme
- 2 Unemployment Insurance Scheme Eligibility: Who Can Apply
- 3 Eligibility Criteria for the Unemployment Insurance Scheme
- 4 Unemployment Insurance Registration | How to Subscribe to The Unemployment Insurance Scheme?
- 5 Unemployment Insurance UAE Last Date
- 6 How Much a Worker Should Pay as a Monthly Insurance?
- 7 When Will an Insured Worker Lose Compensation Eligibility?
- 8 UAE Unemployment Insurance Scheme Benefits
- 9 FAQs: UAE Unemployment Insurance Scheme
UAE Unemployment Insurance Scheme
An unemployment insurance scheme is a form and a financial support program offered to residents workings and Emiratis in case they lose their job. Simply put, it aims to provide financial support, flexibility, and stability to the unemployed. However, the worker must pay a monthly insurance premium in exchange during his employment period.
Unemployment Insurance Scheme Eligibility: Who Can Apply
All workers working in the private and federal sector can apply for this scheme including workers who have paid into it for a year and got terminated. Besides, if an employee has worked and paid into the insurance system for at least 12 months and has not been fired for misbehavior or resignation, they are eligible for the jobless payment. Also, commission-based employees are also eligible to join the program. However, the scheme doesn’t apply to some such as :
- Domestic workers
- Employees on temporary contracts
- Part-time employees
- Employees who have been dismissed or resigned for disciplinary reasons.
- Workers under the age of 18
- Investors and business owners
- Insured employees who have left the country
- Retirees who receive a pension
- Retires joining a new employer.
Eligibility Criteria for the Unemployment Insurance Scheme
To subscribe to the UAE Unemployment Insurance Scheme, workers should meet some eligibility criteria. Wondering what those are? Check below.
- If an employee wants to apply, then they need to do that within 30 days of the termination date.
- Workers must have paid the monthly premium for 12 consecutive months.
- Employees must be lawfully present in the UAE at the time of filing a claim.
Besides, you must know that the UAE Unemployment Insurance Scheme is a mandatory scheme and those who fail will be subjected to fines by the concerned authorities. So if you fail to pay within the grace period, you’ll have to pay Dhs400 (failure to subscribe to the scheme) and Dhs200 ( if the worker fails to pay the insurance premiums for over 3 months) respectively. Additionally, employees who don’t pay all the fines, won’t be able to renew their residence visas or even obtain new work permits.
Unemployment Insurance Registration | How to Subscribe to The Unemployment Insurance Scheme?
The unemployment insurance scheme is represented and is the concern of Dubai Insurance. Planning to subscribe to the UAE Unemployment Insurance Scheme? Here are the easy online steps on Unemployment insurance UAE How To Apply Online. One needs to follow :
- Firstly, visit the official website at www.iloe.ae
- Now access the registration page by clicking on subscribe here.
- Now choose your employment sector.
- In the next step, what you need to do is give your personal information. This includes details such as phone number, and email address. You’ll also receive a verification code through SMS so make sure to provide genuine details. Besides, you’ll also need to select your preferred payment interval which is either annual, semi-annual, monthly, or quarterly.
- Once you’ve provided all your details, remember to go through them all to avoid mistakes. Now to complete the registration process, continue to the payment gateway. Make sure to keep a duplicate or screenshot of your details for future use.
Furthermore, there are many other ways too on how an employee can subscribe to the UAE Unemployment Insurance Scheme. This includes smart applications, business service centers, SMS, bank ATMs, kiosk machines, money exchange companies, du, and Etisalat as well as other channels as announced by the ministry.
Unemployment Insurance UAE Last Date
The last date or deadline for the Unemployment insurance scheme is 30 June 2023.
How Much a Worker Should Pay as a Monthly Insurance?
For the UAE Unemployment Insurance Scheme employees will have to pay the insurance either annually, quarterly, half-yearly, or monthly. Besides, here is how much monthly insurance a worker must pay:
- A monthly insurance premium of AED 5 (AED 60 annually) must be paid by the worker if he has a salary of AED 16,000 or less. However, the compensation must not exceed more than AED 10,000 monthly.
- A monthly insurance premium of AED 10 (AED 120 annually) must be paid by the worker if he has a salary exceeding AED 16,000. However, the compensation must not exceed more than AED 20,000 monthly.
It is the responsibility of each employee to sign up for the Scheme and make the necessary contributions. Besides, to prevent the imposition of penalties, it is also advised that employers must make employees aware of the Scheme and emphasize their responsibilities.
When Will an Insured Worker Lose Compensation Eligibility?
Wondering if an Insured worker under the UAE Unemployment Insurance Scheme can lose his compensation eligibility? The answer is simply yes. However, here are the following situations that lead to the loss of compensation eligibility :
- Fraud or deceit involved in the worker’s claim.
- A fictitious establishment where the worker works
- The worker in the private sector has been dismissed from work for disciplinary reasons under the UAE’s Labour Law.
UAE Unemployment Insurance Scheme Benefits
Here are the Key points about the UAE Unemployment Insurance Scheme that every individual must know :
- It aims to provide protection to employees both working in the private sector and in the UAE’s federal government.
- The scheme is applicable to nationals, the private sector, and resident employees of the federal government.
- To be eligible, employees must pay an insurance premium on a monthly basis.
- To receive the insured amount, employees must be insured for 12 consecutive months marked from the date of subscription.
- The payment will cease if an individual finds a new job during the period of compensation entitlement.
- The insured and service provider can negotiate for additional benefits.
FAQs: UAE Unemployment Insurance Scheme
Is UAE unemployment insurance mandatory?
Yes. UAE Unemployment Insurance Scheme is a mandatory scheme and those who fail will be subjected to fines by the concerned authorities.
Who will pay the unemployment insurance in UAE?
A monthly insurance premium of AED 5 (AED 60 annually) must be paid by the worker if he has a salary of AED 16,000 or less. However, the compensation must not exceed more than AED 10,000 monthly.
A monthly insurance premium of AED 10 (AED 120 annually) must be paid by the worker if he has a salary exceeding AED 16,000. However, the compensation must not exceed more than AED 20,000 monthly.
What is the last date of unemployment insurance in UAE?
The last date of unemployment insurance in UAE is 30th June 2023
What are unemployment benefits in UAE?
It aims to provide protection to employees both working in the private sector and in the UAE’s federal government.
What are common employee benefits in UAE?
Access to counseling services and support.
Flexible working hours.
Financial advisory services.
Part-time work opportunities.
In-house educational resources and support.
Supplemental maternity and paternity leave.
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