The UAE introduced an Unemployment Insurance Scheme on January 1, 2023. This scheme aims to provide social security to employees who have been laid off. It is available to both federal government and private sector employees. The subscription to the scheme is mandatory as per the Ministry of Human Resources and Emiratization (MOHRE).
Eligible employees who have lost their jobs can receive compensation in the form of a monthly salary for up to three months under this scheme. However, certain requirements must be met to qualify for the benefits.
Eligibility Criteria
To be eligible for the Unemployment Insurance Scheme, employees in the federal and public sectors, both expats and Emiratis, must meet the following criteria.
- Have worked continuously for a minimum of 12 months in their previous job from the date of signing up for the insurance plan
- Employees wo do not fall under the exempted categories, include domestic helpers, juveniles below 18, investors, part-time employees, and retirees.
Important Exclusions
Employees who are not eligible for compensation under the scheme.
- Terminated for disciplinary reasons.
- Have voluntarily resigned
- Have left the UAE
- Have started a new career
How to Sign Up for the Scheme?
Employees can subscribe to the Unemployment Insurance Scheme through various channels, including:
- Insurance Pool website: Iloe.Ae
- Al Ansari Exchange
- Kiosk machines
- Telecommunications bill payment methods (du and Etisalat)
- “iloe” app for smartphones
Calculation of Insurance Pay
Under the scheme, the insurance coverage compensation is paid for a maximum of three months from the date of unemployment. The monthly compensation is calculated at 60% of the basic wage.
Insurance Program Categories and Costs
The insurance program is divided into two categories based on the employee’s basic salary.
Category 1: Employees with a basic salary of at least Dh16,000
- Monthly insurance cost: Dh5 (or Dh60 annually)
- Monthly compensation: Up to Dh10,000 or 60% of the basic salar
Category 2: Employees earning Dh16,000 or more
- Cost of insurance: Dh10 (or Dh120 annually)
- Monthly compensation: Up to Dh20,000 or 60% of the basic salary
Commission based staff members are also eligible to join the scheme. Insurance payments can be made on a monthly, quarterly, half-yearly, or annual basis, with the monthly cost varying depending on the category.
Claiming Insurance Benefits
To claim insurance benefits, employees should submit a compensation claim within 30 days from the date of unemployment. Compensation will be disbursed within two weeks of the claim date and will not exceed three months per claim.
The Insurance Pool and Participating Insurance Companies
“The Insurance Pool” is overseen by Dubai Insurance Company and comprises nine national insurance companies operating in the UAE. These companies include:
- Dubai Insurance Company
- Abu Dhabi National Insurance Company
- Al Ain Ahlia Insurance Company
- Emirates Insurance Company
- National General Insurance Company
- Orient Insurance
- Abu Dhabi National Takaful Company
- Oman Insurance Company
- Orient UNB Takaful Company
It is important to note that the Insurance Pool was established in 2018 as the legal entity responsible for providing insurance protection to employees covered by the UAE Workers Protection Program.
