Certain residents of the UAE have become eligible to receive cash benefits for up to three months if they find themselves unemployed. This initiative, confirmed by a top executive to Khaleej Times, is part of the Involuntary Loss of Employment (ILOE) insurance scheme introduced in January 2023.
Dana Kansou, manager of Strategic Partnerships at Dubai Insurance, emphasized the necessity for subscribers to promptly renew their policies to avoid the cancellation of their insurance certificates. A penalty of Dh400 is imposed for failure to renew.
To be eligible for compensation, subscribers must have been part of the ILOE scheme for a minimum of twelve months. Kansou stated that claimants must file their claims within 30 days of employment termination, ensuring they provide valid documentation to prove involuntary unemployment.
The compensation, amounting to 60% of the claimant’s average basic salary over the preceding six months, is paid for a duration of three months or until the claimant secures new employment, whichever is sooner. However, if a claimant leaves the country or obtains new employment, they become ineligible for further compensation.
The insurance scheme offers negotiable terms for higher premiums, although these options are yet to be finalized. The scheme is mandatory for Emiratis and expatriates in the federal government and private sectors, excluding specific categories such as investors and domestic helpers.
The ILOE scheme is split into two categories based on basic salary levels, with the maximum monthly compensation set at Dh10,000 for salaries up to Dh16,000, and Dh20,000 for salaries exceeding Dh16,000.