Register for UAE unemployment scheme ahead of October deadline

The UAE public is being reminded to subscribe to the unemployment insurance scheme ahead of the October 1 deadline or face a fine of AED 400.

The Ministry of Human Resources and Emiratisation (MoHRE) said it has provided the option for firms to register their workers, however, "it is the employee’s responsibility to enroll in the system, not the employer’s, who incurs no additional costs".

The scheme applies to all workers in the private and federal sectors – both citizens and residents – excluding investors (business owners who own and manage their business themselves), domestic workers, temporary employees, minors under the age of 18, and retirees who receive pension and have joined a new employer.

Subscription can be completed by visiting the Involuntary Loss of Employment (ILOE) Insurance Pool website, the ILOE smartphone application, as well as Kiosks, business service centres, exchange companies (such as Al Ansari), and banks’ smartphone applications.

The insurance scheme is divided into two categories: the first covering those with a basic salary of AED16,000 or below, where the insurance premium for the insured employee in this category is set at AED 5 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, and 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 forfeited in the event that he/she cancels their residency and leaves the country or joins a new job, within the processing period.

The insurance claim will be processed within two weeks of submission.

The compensation is calculated at the rate of 60 per cent of the average basic salary in the last six months before unemployment and paid for a maximum of three months for each claim from the date of unemployment, provided the employee in question was not terminated for disciplinary reasons, and has not voluntarily resigned.

The system aims to strengthen the job market and provide protection for workers until alternative employment opportunities are available, in addition to attracting the best talents to the country.

More from Local

Coming Up on Dubai Eye

  • The Business Breakfast

    6:00am - 10:00am

    The Business Breakfast is the day’s must listen for the UAE’s business leaders, and those who aspire to be.

  • The Agenda

    10:00am - 1:00pm

    Broadcasting every weekday, Georgia Tolley goes beyond the headlines to speak to government ministers, decision makers, analysts and local experts to find out how the news will impact those of us living in the UAE.


On Dubai Eye

  • Flying Taxis

    It sounds like an episode of The Jetsons, but the sight of flying taxis whizzing around our cities could be much closer than you think.

  • Tough penalties for deliberate tax evasion

    The UAE has said that tougher penalties will come into force from 1st August for not keeping proper corporate tax records.