The Ministry of Human Resources and Emiratisation (MoHRE) in the UAE is reminding eligible employees to register for the mandatory unemployment insurance scheme before the October 1 deadline. Those who fail to do so will face a Dh400 fine. This low-cost job security net already has nearly 5 million subscribers and provides financial support for a limited period in case of job loss. To be eligible for compensation, an employee must have subscribed to the scheme for at least 12 consecutive months. However, if an individual cancels their residency, leaves the country, or takes on a new job, they forfeit the right to claim compensation.
The ministry has stressed that it’s the responsibility of employees to enroll in the system, even though employers have the option to register their workers. The scheme covers both citizens and residents in the private and federal sectors, with exceptions for investors, domestic workers, temporary employees, minors under 18, and retirees receiving pensions from a new employer. Registration can be completed through various channels, including the Involuntary Loss of Employment (ILOE) insurance pool website, the ILOE app, kiosks, business service centers, exchange companies, and bank apps. The insurance scheme offers two categories based on salary: the first, for those with a basic salary of Dh16,000 or below, carries a monthly premium of Dh5 and a maximum monthly compensation of Dh10,000; the second, for those with a basic salary exceeding Dh16,000, requires a Dh10 monthly premium and provides a maximum monthly compensation of Dh20,000. If an employee subscribes to the scheme but fails to pay premiums for more than three months after the due date, their insurance certificate will be canceled, and a Dh200 penalty imposed. Compensation is calculated at 60 percent of the average basic salary in the six months before unemployment and is paid for a maximum of three months for each claim, provided that the employee was not terminated for disciplinary reasons or did not resign.