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UAE Ministry of Human Resources and Emiratization Urges Participation in “Unemployment Insurance” Before October 1st Deadline to Avoid Penalties

UAE Ministry of Human Resources and Emiratization Urges Participation in “Unemployment Insurance” Before October 1st Deadline to Avoid Penalties

Dubai, September 19 – The Ministry of Human Resources and Emiratization has reiterated its call to all eligible individuals, including citizens and residents, to expedite their enrollment in the unemployment insurance system before the upcoming October 1st deadline. This initiative aims to prevent financial penalties, amounting to 400 dirhams, from being imposed on non-participants.

In a statement released today, the ministry highlighted that employers have the option to register their employees in the system, even though the responsibility for enrollment lies with the employees themselves, and it carries no cost for the employer.

The unemployment insurance system encompasses both private sector workers and federal government employees, whether they are citizens or residents. Notable exceptions include business owners, auxiliary labor, temporary contract workers, individuals under 18 years of age, retirees receiving pensions who have taken up new employment.

Registration for the system can be done through various channels, including the Insurance Authority’s website at www.iloe.ae, the iloe smart application, self-service kiosks, business service centers, exchange centers (such as Ansari Exchange), and smartphone applications offered by various banks and financial institutions.

The unemployment insurance system classifies individuals into two categories. The first category includes those whose basic salary is 16,000 dirhams or less, with an employee’s monthly subscription cost of 5 dirhams (or 60 dirhams annually). The maximum monthly compensation in this category is 10,000 dirhams.

The second category comprises individuals earning more than 16,000 dirhams as their basic salary, with a subscription cost of 10 dirhams per month (or 120 dirhams annually). The maximum monthly compensation for this category is 20,000 dirhams.

To be eligible for compensation, participants must have continuous enrollment in the insurance for at least 12 consecutive months. The insured individual forfeits the right to claim compensation upon leaving the country or accepting new employment. The duration of compensation payout does not exceed two weeks from the claim date. The insurance program provides cash compensation for a maximum of three months, provided the insured individual does not resign or get terminated for disciplinary reasons.

Compensation is calculated at 60% of the employee’s basic salary during the last six months preceding their unemployment.

The unemployment insurance system is a pioneering legislation in the UAE’s labor market, providing social protection for workers, both citizens and residents, to ensure a decent standard of living until they secure alternative employment. It also plays a crucial role in attracting and retaining top global talents in the country’s labor market.

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