DUBAI, 4th October, 2023 (WAM) — Over 6.5 million employees have subscribed to the Unemployment Insurance Scheme from 1st January (starting date for registration) to 1st October 2023, The Ministry of Human Resources and Emiratisation (MoHRE) announced on Wednesday. With an AED400 fine to be imposed on workers who did not enrol themselves in the Scheme, the Ministry said workers can know if the fine was imposed on them via MoHRE’s app, website or Business Service Centres. The Scheme covers citizens and residents working in the private and federal government sector, excluding investors (business owners who own and manage their establishments), domestic workers, temporary employees, minors under the age of 18, and retirees who receive a pension and have joined a new employer. The Ministry commended those who have enrolled in the Scheme, noting, “This signals their commitment to complying with Federal Decree-Law No. 13 of 2022 on Unemployment Insurance Scheme, and underlines their awareness of the benefits th
e system provides, which include a social safety net for citizens and residents, ensuring a decent life for them and their families until alternative employment opportunities arise. Additionally, the scheme aims to attract and retain top global talent to the UAE labour market.” MoHRE urged those eligible for the system to register, noting that while the option has been provided for employers to register their employees in the system, it is ultimately the employee’s responsibility to enrol, not the employer’s, who incurs no additional costs. Subscriptions can be completed by visiting the Insurance Pool website (www.iloe.ae), the ILOE smartphone application, designated physical kiosks, business service centres, exchange companies (such as Al Ansari Exchange), and banks’ smartphone applications. The Unemployment Insurance Scheme is divided into two categories: the first covers those with a basic salary of AED16,000 or less, where the insurance premium for the insured employee in this category is set at AED5 per
month (AED60 annually), and the maximum monthly compensation is set at AED10,000. Meanwhile, the second category includes those with a basic salary exceeding AED16,000, where the insurance premium is AED10 per month (AED120 annually). The monthly compensation for this category is capped at AED20,000. The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The insured’s right to compensation is not eligible if he/she cancels their residency and leaves the country or joins a new job, within the processing period. The claim will be processed within two weeks of submission. The compensation is paid for a maximum of three months from the date of unemployment for each claim, provided the employee in question was not terminated for disciplinary reasons, and has not voluntarily resigned. The amount is calculated at the rate of 60 percent of the average basic salary in the last six months before unemploymen
t.
Source: Emirates News Agency