Emiratis, expats urged to benefit from new Unemployment Insurance Scheme

Emiratis, expats urged to benefit from new Unemployment Insurance Scheme

The insurance program shall compensate the insured with a sum of money for a period not exceeding three months

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced that the subscription to the Unemployment Insurance Scheme will start on Jan.1, 2023, calling on UAE nationals and residents who work in the federal government and private sector to subscribe.

Dubai Insurance Company, which represents the Insurance Pool for presenting unemployment coverage services, offers seven channels to subscribe for the scheme.

The Pool offers seven subscription channels: the website www.iloe.ae, the smart app “iloe”, Kiosk machines, businessmen service centres, Al Ansari Exchange, bank ATMs and applications, as well as telecommunication bills.

The scheme aims to create a low-cost job security umbrella that supports the professional path and living stability of workers in the two sectors referred to, by relying on mechanisms that do not bear any costs to employers.

The insurance program shall compensate the insured with a sum of money for a period not exceeding three months, provided that he does not submit to resign or is dismissed for disciplinary reasons.

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The subscription fees depend on the employee’s basic salary. The first category is those with a basic salary of Dhs16,000 or less; their subscription fee is Dhs5 per month (Dhs60 annually), whereas, the second category is those with a basic salary exceeding Dhs16,000; their subscription fee is Dhs10 per month (Dhs120 annually).

The first category is eligible for a monthly cash compensation reaching up to Dhs10,000, while the maximum monthly cash compensation for the second category is Dhs20,000.

The maximum value of the monthly compensation is Dhs10,000 for the first category, and Dhs20,000 for the second category, as the compensation that the eligible employee receives is calculated at an average of 60% of his basic salary in the last six months before being terminated.

The period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim, while the employee can choose the periodicity of paying the insurance premium either annually, semi-annually, quarterly or monthly.

The insured can submit the claim through various claim channels, including the website https://www.iloe.ae, smart app iloe, or the call centre of the Insurance Pool 600599555.

The insured must be subscribed for at least 12 consecutive months to be eligible for a cash compensation. However, they would lose the right to claim the compensation should they leave the country or take up a new job.

Investors: Owners of establishments in which they work, domestic workers, temporary contract workers, juveniles under 18 years, and retirees who receive a pension and joined a new job are not eligible to subscribe to the insurance scheme.

What is unemployment insurance?

It is a system that aims to compensate the insured worker with a cash amount for a period of 3 months, in the event that he becomes jobless, in exchange for a subscription value that is collected from the worker monthly during his work period.

The worker receives compensation from the date of unemployment, and the compensation is on a monthly basis at the rate of 60% of the salary (basic salary) and for a period of three months from the date of unemployment, which is the maximum period for compensation for each claims.

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