Employees who fail to register for unemployment insurance by June 30, 2023, will be penalized with Dh400
In order to properly benefit from the job loss insurance scheme and file claims on time, UAE employees should subscribe as soon as possible.
From January 1, 2023, employees who lose their jobs due to reasons other than disciplinary action or resignation will be supported by the Involuntary Loss of Employment (ILOE) scheme.
A condition exists that employees will be eligible for a claim if they subscribe for at least 12 consecutive months. Therefore, employees should join as soon as possible. ILOE Pool is spearheading the campaign in the country and Dana Kansou, manager of strategic partnerships at Dubai Insurance, said employees will receive a cash benefit for a maximum of three months after completing 12 months.
The plan is mandatory for private sector and government employees.
The insurance scheme in the UAE is available for one or two years to employees. The employee will be penalized Dh400 if he or she fails to register for unemployment insurance by June 30, 2023.
For instance, if an employee loses his/her job on January 15, 2024, but purchases the policy on January 20, 2023, no claim can be filed.
Nevertheless, they will be eligible for the claim if they registered for the scheme for at least 12 consecutive months before losing their job. Kansou advised people to sign up as soon as possible to start the clock counting down until they are eligible to submit a claim.
A monthly cash benefit of up to 60% of the employee’s average basic salary will be paid out under the ILOE scheme. Among the plans introduced under this scheme were two. For up to Dh10,000 in monthly compensation for three months maximum, employees with a basic salary of Dh16,000 or below must pay Dh5 plus VAT per month (or Dh60 plus VAT for a year). The monthly compensation for Category B workers over Dh16,000 is Dh10 plus VAT a month (Dh120 + VAT for a year) for a maximum of three months of compensation up to Dh20,000.