United Arab of Emirates announces major unemployment insurance update

UAE statutory unemployment insurance has changed significantly. Freezone and semi-governmental employees can join the job loss scheme.

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The official portal now asks, "Do you work in semi-government entities or companies registered in a UAE Freezone?" Subscribe here and proceed to Non-Registered in MoHRE.”

Employees in the UAE must purchase unemployment insurance since January 1, 2023. Semi-government entities and Freezone personnel were formerly exempt.

unemployment insurance update system

The job loss scheme pays 60% of base income for three months after employment. The monthly limit is AED 20,000.

Non-applicants will be fined on June 30.

Unemployment insurance costs AED5 to AED10 per month from select insurance organisations.

Since its inception last month, more than one million UAE workers have joined the scheme.

All about mandatory insurance:

  • Applying: Visit iloe.ae, click subscribe now, and follow the processes.
  • Cost: AED5 per month for individuals earning a basic income of AED16,000 or less, AED10 for those earning more.
  • Deadline: June 30. Workers who change visas or start work in the UAE after January 1, 2023, will have a four-month grace period.
  • Non-subscription fine: AED400
  • Missing instalment premium fine: AED200
  • Investors, domestic servants, temporary contract workers, juveniles, and retirees are exempt.
  • Subscription channels: Insurance Pool website and smart app, bank ATMs and kiosk machines, business service centres, money exchange firms, du and Etisalat, SMS.
  • Minimum subscription period: 12 months for pay-out Maximum compensation: Three months
  • Non-applicable: Fraud or deceit, bogus employer, existing complaints, non-peaceful labour strikes or stoppages.

The Insurance Pool website states the following requirements for compensation:

  • The insured must subscribe for 12 months. Provided there is no interruption in the subscription for three consecutive months - The Insured was committed to paying all insurance premiums on time - The Insured proves that unemployment is not due to resignation
  • The federal Labour Relations Law, Human Resources Law, and any related legislation prohibit dismissing the Insured for disciplinary reasons.
  • File the claim within 30 days of losing the job or resolving the labour dispute in court.
  • The insured worker should not have an absence-related complaint.
  • If there was fraud or dishonesty in the claim or the employer is fake, the insured will not be compensated.
  • Non-peaceful labour strikes or stoppages, whether harmful or not, should not result in job loss. The Insured must lawfully reside in UAE.

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