Compensations can go as high as Dh20,000 per month for those who pay a Dh10 monthly premium; subscription is set to start soon
Starting January 1, 2023, all employees in the UAE will have to subscribe to the country's unemployment insurance scheme — which guarantees financial security in case one loses his or her job.
Under the scheme, employees will receive a cash benefit for a limited period not exceeding three consecutive months in the event of unemployment — however, not all job loss cases will be covered.
The official website of the Involuntary Loss of Employment (ILOE) insurance scheme has listed certain criteria for eligibility. Those who lost their jobs due to resignation are not entitled to cash benefits.
Here are some of the conditions that the insured must meet:
However, the government has exempted certain categories from the requirement. These include investors, business owners, domestic workers, temporary employees, juveniles under the age of 18, retirees who receive a pension and have joined a new employer.
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There are multiple channels to subscribe to this scheme, from business service centres to bank ATMs, money exchange companies, the insurance pool’s website (www.iloe.ae), du and etisalat, and via SMS.
In paying premiums, employees may choose from a number of billing options, which can be monthly, quarterly, semi-annual, or annually.
Premium starts from as low as Dh5 a month, Dh60 a year, or Dh120 for two years for employees with a basic salary of Dh16,000 and below. The compensation for this category must not exceed a monthly amount of Dh10,000.
Those with a basic salary exceeding Dh16,000 will need to pay Dh10 per month or Dh120 annually. The compensation for this category must not exceed Dh20,000 monthly. The value of the insurance policy is subject to five per cent VAT.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.