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Fri, Nov 22, 2024 | Jumada al-Awwal 20, 1446 | DXB
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UAE job loss insurance scheme: Over 60,000 employees subscribe in 2 days
Subscriptions to the scheme had opened on January 1
More than 60,000 employees in the UAE have subscribed to the unemployment insurance scheme within two days.
Subscriptions to the scheme had opened on January 1. It aims to provide financial security to workers and professionals in the public and private sectors in case of job losses.
About 86 per cent of the instated subscribed to the scheme via the Involuntary Loss of Employment (ILOE) website.
The website www.iloe.ae is one of seven channels provided by the Dubai Insurance Company, which represents the insurance complex that is in charge of providing insurance services against unemployment.
Other subscription channels include the smart application of the insurance complex, self-service kiosks, businessmen service centres, Al Ansari Exchange, and smartphone applications of banks in the country, as well as telecom bills.
Two categories of individuals are covered by the insurance. One category includes those whose basic wage is Dh16,000 or less. The subscription amount is Dh5 per month (Dh60 yearly), and the maximum value of the monthly pay is Dh10,000. The other is made up of those whose base wage is more than Dh16,000; the monthly subscription fee for this group is Dh10 (Dh120 annually). The maximum monthly compensation amount is Dh20,000.
If the insured employee does not resign or is not fired for disciplinary grounds, the insurance pays him a sum for a maximum of three months. The pay is calculated on 60 percent of the basic salary in the last six months before being unemployed.
The compensation will be paid within two weeks following the claim date. One has a choice to pay the premium quarterly, monthly, semi-annually, or annually.
The insured individual must submit the claim through the designated channels.
An individual has to be subscribed to the scheme for at least 12 consecutive months to be eligible for the benefit. The person forfeits his right to the claim if he leaves the country or accepts a new position.
The exempted categories for the scheme are investors or owners of establishments, domestic workers, temporary contract workers, juveniles (under 18 years), and retirees who receive a pension and joined a new job.
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