UAE: Beginning to subscribe to the unemployment insurance system for citizens and foreigners working in the country

Abdallah Shahin 2 months ago

The Ministry of Human Resources and Emiratisation announced the start of subscription to the unemployment insurance system for citizens and residents working in the federal government and the private sector, as of next Sunday, the first of January 2023.

Dubai Insurance Company, which represents the insurance pool responsible for providing unemployment insurance services, provides seven channels to subscribe for a nominal amount in the system, according to easy mechanisms and procedures, including the website https://www.iloe.ae and the smart application of the insurance pool alone, Kiosk self-service machines, businessmen service centers, Al Ansari Exchange, smartphone applications for banks and banks in the country, as well as bills for telecom companies.

The implementation of the system comes in the implementation of Federal Decree-Law No. 13 of 2022 regarding insurance against unemployment, which aims to create a low-cost job security umbrella that supports the professional path and living stability of workers in the two sectors referred to, by relying on mechanisms that do not bear any costs to employers.

The insurance program compensates the insured with a sum of cash for a period not exceeding three months, provided that he does not resign or be dismissed for disciplinary reasons. Dirhams annually), while the second category includes those whose basic salary exceeds 16 thousand dirhams, and the subscription value is 10 dirhams per month (120 dirhams annually).

The maximum value of the monthly compensation is 10 thousand dirhams for the first category, and 20 thousand dirhams for the second category, as the compensation that the eligible employee receives is calculated at an average of 60% of his basic salary in the last six months before unemployment.

The period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim, while the employee can choose the periodicity of paying the insurance premium either annually, semi-annually, quarterly or monthly.

The insured must submit the claim through multiple claim channels, namely the website of the Dubai Insurance Company, which represents the insurance aggregator https://www.iloe.ae, the smart application of the insurance aggregator alone, and the call center of the insurance aggregator 600599555.

The compensation is due on condition of participation for at least 12 consecutive months in the insurance, and the right of the insured to claim the value of the compensation is forfeited if he leaves the country or joins a new job.

Excluded from participation in the unemployment insurance system are the investor (owner of the establishment in which he works), auxiliary workers, workers under a temporary contract, minors under 18 years of age, and the retiree who receives a retirement pension and joins a new job.