Over 6.5 Million Enroll in Unemployment Insurance Scheme in 10 Months

In the span of ten months, over 6.5 million employees have joined the Unemployment Insurance Scheme, according to the Ministry of Human Resources and Emiratisation (MoHRE). The enrollment period, which began on January 1, 2023, has witnessed significant participation.

The MoHRE has stated that employees who fail to register for the Scheme may face an AED400 fine. Workers can verify if the fine has been imposed on them by utilizing MoHRE’s app, website, or Business Service Centres.

The Unemployment Insurance Scheme extends its coverage to both citizens and residents employed in the private and federal government sectors. Exemptions apply to investors (business owners who own and manage their establishments), domestic workers, temporary employees, minors under 18 years of age, and retirees receiving pensions who have acquired new employment.

The Ministry commended those who have chosen to enroll in the Scheme, emphasizing their dedication to complying with Federal Decree-Law No. 13 of 2022 on the Unemployment Insurance Scheme. It also highlighted the benefits of the system, including a social safety net for citizens and residents, ensuring a decent standard of living for them and their families until alternative employment opportunities arise. Furthermore, the scheme aims to attract and retain top global talent in the UAE labor market.

MoHRE encouraged eligible individuals to register, clarifying that although employers have the option to register their employees in the system, ultimate responsibility for enrollment lies with the employees themselves, with no additional costs incurred by employers.

Subscription can be accomplished through various channels, including the Insurance Pool website (www.iloe.ae), the ILOE smartphone application, designated physical kiosks, business service centers, exchange companies like Al Ansari Exchange, and smartphone applications of banks.

The Unemployment Insurance Scheme is categorized into two groups. The first group encompasses those with a basic salary of AED16,000 or less, with an insurance premium of AED5 per month (AED60 annually) for insured employees in this category, and a maximum monthly compensation of AED10,000.

The second category includes individuals with a basic salary exceeding AED16,000, requiring an insurance premium of AED10 per month (AED120 annually). The maximum monthly compensation for this category is AED20,000.

Compensation can be claimed as long as the insured employee has been a member of the Unemployment Insurance Scheme for at least 12 consecutive months. However, the claim is not valid if the insured individual cancels their residency and departs the country or secures new employment within the processing period. Claims will be processed within two weeks of submission.

Compensation is granted for a maximum of three months from the date of unemployment for each claim, provided that the employee was not terminated for disciplinary reasons or did not resign voluntarily. The amount is calculated at 60% of the average basic salary during the six months before unemployment.

Apple Arcade Unveils Exciting Lineup of Games and Updates for October

Leave a Reply

Your email address will not be published. Required fields are marked *

Emiratisation Details For UAE Business Know About Corporate TAX-UAE