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UAE – Unemployment Insurance Expanded
May 26, 2023
The United Arab Emirates has expanded the categories of workers who are required to enroll in the country’s unemployment insurance system. Employees working in any private company incorporated in Free zone or mainland or government sector organization in the UAE, should enroll for Unemployment Insurance Scheme on or before 30th June 2023.
The scheme is called the Involuntary Loss of Employment (ILOE). Employees can subscribe for it online, or through any other authorized insurance providers.
To be eligible to receive compensation under the insurance scheme, applicant must complete a minimum of 12 consecutive months in his/her previous job, calculated from the day applicant subscribed to the insurance scheme. Once applicants are eligible, they will receive 60 per cent of their basic salary for three months if they lose their job due to reasons beyond their control.
There are a few exempted categories of employees:
- Investors (owners of companies they work at)
- Domestic helpers
- Temporary-contract workers
- Juveniles under the age of 18
- Retirees who are entitled to a pension and joined a new job
Employees working in private companies in Free zone that is not registered to MOHRE should select ‘Non-Registered in MOHRE’ upon clicking the www.iloe.ae and input the details to proceed with registration. It will take approximately three to five minutes to complete the registration.
Previously employees working in the Free zone or with a semi-government organization were exempt from the registration rule.
If employees working in the UAE fail to subscribe to the scheme once the deadline has passed, they face a fine of AED 400.