The UAE announces the addition of two new categories to the compulsory job loss insurance system
The Ministry of Human Resources and Emiratization (MoHRE) has added two new classes to the list of employee categories that are now eligible to subscribe to the United Arab Emirates' job loss scheme. This expansion brings the total number of employee classes that are eligible to participate in the programme to a total of eight.
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Involuntary loss of employment (ILoE) is a scheme that was launched by the Ministry of Human Resource and Employment (MoHRE). Employees who work in free zones and semi-government companies are eligible to enrol for the programme.
Employees in the private sector and those working for the federal government were required to sign up for job loss insurance beginning January 1, 2023, as a result of a mandate issued by the Ministry.
If employees do not subscribe by the deadline of June 30, they will be subject to a penalty of Dh400. In addition, a fee of Dh200 will be imposed on the policyholder if the premiums have been unpaid for a period of more than three months from the date they were due.
Categories to which compulsory insurance applies
Employees whose annual base salaries are less than Dh16,000 are obliged to pay a premium of Dh5 per month or Dh60 per annum in addition to VAT if they wish to participate in the ILoE insurance programme. They will get compensation equal to sixty percent of the average basic pay for a period of three consecutive months in the event that they lose their employment. However, workers who earn a basic wage of more than Dh16,000 are obliged to pay a premium of Dh10 per month or Dh120 per year in order to participate in this programme.
You have the option of purchasing a one- or two-year coverage period. ATMs, Dubai Insurance, the ILOE website, and Al Ansari Exchange are the several locations where subscriptions can be purchased.
Since the service was first introduced in January 2023, the Ministry said at the beginning of April that the number of customers has surpassed one million.
People who are employed in semi-government entities or companies that are registered in a UAE free zone can subscribe by going to the "Non-Registered in MoHRE" link on the ILoE portal. This information was provided in a notice that was published on the website of the ILoE.
The Minister of Human Resources and Emiratisation, Dr. Abdulrahman Al Awar, issued a call to action to employees who are qualified to subscribe to the plan in order to benefit from coverage. He also encouraged businesses to encourage their employees to subscribe to the scheme.