The Unemployment Insurance Scheme in the UAE is a mandatory program that provides financial support to eligible employees who lose their jobs involuntarily. Employees and employers contribute to the scheme, and eligible employees can receive a monthly cash benefit for up to three months. The scheme helps to support unemployed workers and promote social stability and economic development.
What is the Unemployment Insurance Scheme UAE?
The Unemployment Insurance Scheme in the United Arab Emirates (UAE) is a mandatory social security program that provides financial support to eligible employees who lose their jobs involuntarily.
The scheme was launched on January 1, 2023, and applies to all Emirati and expatriate employees in the public and private sectors.
To be eligible for unemployment benefits, employees must have been insured for at least 12 continuous months prior to their job loss and must not have been dismissed for disciplinary reasons.
Eligible employees will receive a monthly cash benefit equal to 60% of their basic salary, up to a maximum of AED 10,000 for Category A employees and AED 20,000 for Category B employees. The benefit is paid for a maximum of three consecutive months for each claim.
Who contributes to the Unemployment Insurance Amount?
The Unemployment Insurance Scheme is funded by contributions from both employees and employers. Employees contribute 0.5% of their basic salary to the scheme, while employers contribute 0.5%. Contributions are capped at AED 200 per month for employees and AED 400 per month for employers.
The Unemployment Insurance Scheme is a significant step forward in the UAE’s social safety net. It provides financial support to unemployed workers during difficult times, helping them to meet their basic needs and find new employment. The scheme also helps to promote social stability and economic development.
Eligible Participants in the UAE Unemployment Insurance Scheme?
All UAE Nationals and Residents working in the Private sector or the Federal Government are eligible for the Unemployment Insurance Scheme.
How to apply for Unemployment insurance Online in UAE?
Starting from January 1, 2023, the Unemployment Insurance Scheme is in place to provide protection to employees. It offers a maximum 3-month cash compensation if they haven’t resigned or been dismissed for disciplinary reasons.
This insurance is available to UAE nationals and residents working in the private sector or federal government, and it comes at no cost to the employers. Here are the methods for the unemployment insurance scheme.
What are the unemployment insurance UAE Applying Channels?
Where You Can Apply for the Unemployment Insurance Scheme? Here through various channels, including:
- Insurance Pool Website: Visit www.iloe.ae “https://www.iloe.ae/“
- Smart Application: Download and use the Insurance Pool’s smart application, ‘iloe.’
- Al Ansari Exchange: In-person registration at Al Ansari Exchange locations.
- Kiosk Machines: Utilize designated kiosk machines.
- Telecommunication Bills: Apply through your telecommunication service provider’s bills.
- Bank ATMs and Applications: Access subscription services via bank ATMs and mobile applications.
- Businessmen Service Centers: Visit local businessmen’s service centres for assistance.
Who is Eligible for unemployment insurance compensation in UAE?
To be eligible for compensation under this scheme, you must meet the following conditions:
- Subscription Duration: You should be subscribed to the insurance scheme for at least 12 consecutive months.
- Employment Status: You must not have been dismissed from work for disciplinary reasons or resigned.
Who is Excluded from Unemployment Insurance in UAE?
Some individuals are excluded from the insurance scheme, including:
- Investors (owners of the establishments where they work)
- Domestic workers
- Employees with temporary employment contracts
- Juveniles under 18 years of age
- Retirees who receive a retirement pension and have joined a new job
What is the Unemployment Insurance Subscription Fee and Cash Compensation?
The subscription fee and cash compensation vary based on your income category:
|Subscription Categories||Insurance Cost||Monthly Compensation|
|First Category (Salary ≤ AED16,000)||AED5 per month||Up to AED10,000|
|Second Category (Salary > AED16,000)||AED10 per month||Up to AED20,000|
First Category (Basic salary of AED16,000 or less):
- Insurance Cost: AED5 per month
- Monthly Compensation: Up to AED10,000
Second Category (Basic salary exceeding AED16,000):
- Insurance Cost: AED10 per month
- Monthly Compensation: Up to AED20,000
This Unemployment Insurance Scheme provides financial security to eligible individuals in the UAE, ensuring that they have a safety net during times of job loss or economic uncertainty.
What is the last date for Mohre unemployment insurance in UAE?
The Last Date for subscription is 1 October 2023. If the worker does not subscribe to the Unemployment Insurance scheme before 1 October 2023, he/she will be fined AED 400 “UAE GOVT FINES INFO“.
IS UAE unemployment insurance mandatory?
Yes, unemployment insurance is mandatory for all Emirati and expatriate employees in the public and private sectors in the UAE, with the exception of investors, business owners, domestic workers, temporary employees, and juveniles under the age of 18.
What is the Unemployment Insurance UAE website?
The Unemployment Insurance UAE website is www.iloe.ae. This is the website of the Involuntary Loss of Employment Insurance Pool, which is the entity responsible for administering the Unemployment Insurance Scheme in the UAE.
On the website, you can find information about the scheme, including eligibility requirements, how to register, how to file a claim, and how to receive benefits. You can also download the ILOE mobile app to register for the scheme and manage your account on the go.
Here are some of the things you can do on the ILOE website:
- Register for the Unemployment Insurance Scheme
- File a claim for unemployment benefits
- Check the status of your claim
- Update your personal information
- View your payment history
- Contact ILOE customer support
How much is the fine for unemployment insurance uAE Failure?
If a worker does not subscribe to the Unemployment Insurance scheme before October 1, 2023, they will be subject to a fine of AED 400.
Also read: “What Is Tasheel? All you need to know“.
How much is unemployment insurance fees in UAE?
Employees in the UAE contribute 0.5% of their basic salary to the Unemployment Insurance Scheme, while employers contribute 0.5%. Contributions are capped at AED 200 per month for employees and AED 400 per month for employers.
Does The Employer Have To Pay Anything?
No costs or fees are required from the employers.
Who to contact for Unemployment Insurance Scheme information?
You can Call on Tel: 600590000 or visit the Mohre.gov.ae