As the October 1 deadline for the mandatory unemployment insurance registration approaches, the Ministry of Human Resources and Emiratisation (MoHRE) is urging all applicable employees to enrol in the scheme to avoid a Dh400 fine. The scheme, aimed at providing a safety net for workers in case of involuntary unemployment, applies to all employees in the private and federal sectors, with specific exceptions.
Around 5 million individuals have already taken advantage of this low-cost job security initiative, which affords financial support for a limited period following job loss. To be eligible for compensation, employees must have subscribed to the scheme for at least 12 consecutive months. Claim processing is expedited, promising completion within two weeks of submission.
Details of the scheme
The scheme is divided into two tiers:
- For employees earning a basic salary of Dh16,000 or below: A Dh5 per month premium secures a maximum monthly compensation of Dh10,000.
- For those earning above Dh16,000: The premium is Dh10 per month, with the potential to receive up to Dh20,000 monthly.
Compensation is based on 60% of the individual’s average basic salary over the six months preceding unemployment, available for a span of three months per claim.
Registration and compliance
While employers may opt to register their employees, the onus to enrol ultimately falls on the individual worker. Prospective enrollees can register via various platforms including the Involuntary Loss of Employment (ILOE) insurance pool website, ILOE app, and authorized kiosks and business service centres.
It is important for subscribers to remain current with their premium payments to maintain their eligibility. Failure to pay premiums for more than three months will result in the cancellation of the insurance certificate and a Dh200 penalty.
Who is exempted?
Certain groups are exempt from this mandate, including business owners actively managing their business, domestic workers, temporary employees, individuals under 18, and retirees already engaged with a new employer while receiving a pension.
The MoHRE encourages everyone who is eligible to sign up before the deadline to leverage the benefits of this scheme, promoting greater job security for workers across sectors.