MoHRE Urges Citizens and Residents to Enroll in Unemployment Insurance Scheme Before October 1 to Avoid Penalties

In Brief

The Ministry of Human Resources and Emiratisation (MoHRE) has urged eligible citizens and residents to register for the Unemployment Insurance Scheme before October 1 to avoid an AED400 fine. While employers can assist with registration, it is the responsibility of employees, incurring no additional costs for employers. The scheme applies to all private and federal sector workers, excluding certain categories such as business owners, domestic workers, and retirees who joined new employers. Enrollment can be done online or through various service centers. The scheme has two categories based on salary, with compensation available after 12 months of subscription. The scheme aims to strengthen the job market and provide social protection for workers.

In Detail

The Ministry of Human Resources and Emiratisation (MoHRE) has issued a reminder to eligible citizens and residents to register for the Unemployment Insurance Scheme by September 30 to evade an AED400 fine.

The Ministry emphasized that while employers can facilitate the registration process, it is ultimately the responsibility of employees to enroll in the system, with no additional costs incurred by employers.

The scheme applies to all private and federal sector workers, including both citizens and residents, except for business owners, domestic workers, temporary employees, minors under 18, and retirees receiving pensions who have joined new employers.

To enroll, individuals can visit the Involuntary Loss of Employment (ILOE) Insurance Pool website, use the ILOE smartphone application, or utilize kiosks, business service centers, exchange companies, and banks’ smartphone applications.

The insurance scheme has two categories: one for those with a basic salary of AED16,000 or less, with a monthly premium of AED5 (AED60 annually) and a maximum monthly compensation of AED10,000; the other for those with a basic salary exceeding AED16,000, with a monthly premium of AED10 (AED120 annually) and a monthly compensation cap of AED20,000.

To claim insurance compensation, the injured employee must have been subscribed to the scheme for at least 12 consecutive months. Compensation is calculated at 60% of the average basic salary in the last six months before unemployment and can be claimed for up to three months. This is provided that the employee was not terminated for disciplinary reasons or did not voluntarily resign.

The Unemployment Insurance Scheme aims to fortify the job market, offer social protection to workers, and attract top talent to the country by providing financial support until alternative employment opportunities become available.

Here are some questions and answer type searches that people are doing related to the MoHRE urging citizens and residents to enroll in the Unemployment Insurance Scheme before October 1 to avoid penalties:

Question: What is the Unemployment Insurance Scheme?

Answer: The Unemployment Insurance Scheme is a mandatory social insurance program that provides financial assistance to eligible workers who lose their jobs through no fault of their own.

Question: Who is eligible for the Unemployment Insurance Scheme?

Answer: All private sector employees in the UAE are eligible for the Unemployment Insurance Scheme, regardless of their nationality or salary.

Question: How do I enroll in the Unemployment Insurance Scheme?

Answer: You can enroll in the Unemployment Insurance Scheme through the ILOE website or app.

Question: What is the deadline to enroll in the Unemployment Insurance Scheme?

Answer: The deadline to enroll in the Unemployment Insurance Scheme is October 1, 2023.

Question: What are the penalties for not enrolling in the Unemployment Insurance Scheme?

Answer: If you do not enroll in the Unemployment Insurance Scheme by October 1, 2023, you will be fined AED 400. You will also be required to pay a late penalty fee of AED 200 for each month that you are late in enrolling.

Question: What are the benefits of enrolling in the Unemployment Insurance Scheme?

Answer: The benefits of enrolling in the Unemployment Insurance Scheme include:

  • Financial assistance if you lose your job through no fault of your own.
  • Access to training and job placement services.
  • Peace of mind knowing that you and your family are financially protected in the event of job loss.

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