UAE job loss insurance announces 3 fines for violations by 30th June

Asma 3 weeks ago

The grace period for enrolling in unemployment insurance is about to expire, and those who miss the June 30 deadline will be penalized, According to Federal Decree-Law No. 13 of 2022, all employees in the public and private sectors must sign up for the programme, On January 1st, 2023, the subscription period officially started.

UAE job loss insurance 2023

The Involuntary Loss of Employment (ILOE) insurance programme, as it is officially named, attempts to give people financial security if they lose their work for reasons other than termination or disciplinary action.
After June 30th, people who break the law including those who don't subscribe will be subject to severe penalties. Employee pay or benefits at the conclusion of employment are withheld in the event of unpaid penalties.

Insurance fines

The three offences and penalties stated in the statute are as follows:

A 400 AED fee is imposed on employees who fail to sign up for the system before June 30, 2023.
If premiums are not paid for more than three months after the due date, a fine of 200 AED is assessed. The insurance certificate will be revoked as a result of this violation.
Employers who are discovered collaborating with the insured to get unemployment insurance benefits face a fine of 20,000 AED each instance.

unemployment insurance Benefits

Those covered by unemployment insurance may receive up to 60% of their average basic salary if they lose their jobs. The monetary reward will be available for a maximum of three consecutive months per claim.

To file a claim, an employee must have paid the premium for at least 12 months in a row. Other limitations apply, including the requirement to provide proof of involuntary job loss within 30 days.

Insurance costs

Those earning less than 16,000 AED would pay 63 AED (with VAT) per year for insurance.
while those earning more than 16,000 AED would pay 126 AED per year.
Employees can also sign up using the ILOE portal (https://www.diniloe.ae/nsure/login/#/) or the ILOE app.
Payments can also be made through exchanges, business centers, kiosks, bank apps, ATM machines, and other payment kiosks. Soon, an SMS channel will be established.