The Ministry of Human Resources and Emiratisation (MoHRE) in the UAE has recently announced a revised deadline for the mandatory registration in the Involuntary Loss of Employment (ILOE) insurance scheme.
Employees have until October 1, 2023, to register, extending the previous deadline of June 30, 2023.
The extension grants employees additional time to sign up for the initiative launched on January 1, 2023.
This policy applies to individuals working in the private sector, federal government, and free zones.
According to the MoHRE guidelines, registration is the employee’s responsibility, and they can do so through multiple platforms, including the official website www.iloe.ae and its designated app.
A failure to register by October 1 will incur a fine of Dh400. Given this, employees are encouraged to take this extended period to fulfill the necessary registration to avoid penalties.
Scheme Specifics and Eligibility
Under the ILOE, employees who have faced non-disciplinary job loss are eligible to receive a compensation equating to 60% of their average basic salary over the previous six months, for a period of three months.
To qualify for this compensation, individuals must have been enrolled in the scheme for a minimum of 12 consecutive months and apply for the compensation within 30 days of leaving their job.
Registration costs are Dh5 per month plus VAT for those earning less than Dh16,000 monthly, with various payment plans available.
Individuals earning a monthly salary of Dh16,000 or more will have to contribute Dh10 per month.
Since its inception, 4.6 million employees have registered for the scheme.
The extension is particularly beneficial for blue-collar workers, providing them with more time to enroll.
Notably, certain demographics including investors, domestic workers, individuals below 18, and retirees engaged in new employment are exempt from this scheme.