UAE: New platform announced to subscribe to job loss insurance

Employees in the UAE can now subscribe to the mandatory job loss insurance scheme on the Botim app. Known as Involuntary Loss of Employment (ILOE) insurance scheme, employees working in the private sector, federal government departments and free zones have to subscribe to it before October 1, failing which fines will apply.

Consumer technology holding group Astra Tech announced a strategic partnership with Dubai Insurance Company — which manages the ILOE insurance pool — to offer the scheme on Botim. This makes the ultra-app the first to integrate the government-mandated insurance initiative. The app will offer its VIP membership as an added incentive to subscribers.

The initiative, which is now live on the app, allows users to subscribe to the scheme in three steps:

The ILOE scheme will see subscribers benefit from cash compensation in the event of an involuntary loss of employment. Employees who are laid off for non-disciplinary reasons will receive 60 per cent of their basic salary, provided they are subscribed to the scheme for at least 12 months.

Employees with a basic salary below Dh16,000 will get a maximum three-month compensation of up to Dh10,000 per month. The premium for this scheme is Dh5 + VAT per month. Those with a basic salary of Dh16,000 and above will receive a monthly compensation of up to Dh20,000 per month for three months. The premium in this case would be Dh10 + VAT per month.

If an employee does not subscribe to the scheme before the October 1 deadline, a Dh400 fine will be imposed.

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