UAE residents who were among the first to subscribe to the mandatory insurance against job loss at the beginning of 2023 have started receiving reminders to renew their policies.
“Your ILOE (Involuntary Loss of Employment Insurance) policy is due for renewal on January 2, 2024. Please login to your account … to update your details and renew your policy before expiration,” reads a text message sent to this reporter, who had subscribed to the scheme on January 1, 2023 — the first day when it became available.
It aims to ensure continued decent living for the unemployed and achieve a competitive knowledge economy by attracting and retaining the best international talent.
Financial support will be given in exchange for a monthly insurance premium paid by the worker during his employment. All Emiratis and residents working in the federal and private sectors are required to get themselves registered with the Unemployment Insurance scheme that provides financial support to them if they lose their jobs, because of termination by their employers. Renewal can be done via the Ministry of Human Resources and Emiratization’s (MoHRE) digital platforms by clicking on the ‘Subscribe/Renew Here’ button.
Approximately 14% of eligible employees have yet to enroll in the mandatory scheme. However, those who subscribed early are now financially protected in the event of job loss. According to Khaleej Journal, millions of residents have joined the scheme, but only those who have been subscribed for at least 12 consecutive months can claim compensation for job loss. Eligibility begins for individuals who signed up in January 2023.
It’s important to note that individuals cannot claim compensation if they leave the country or secure a new job. MoHRE statistics reveal that over 6.7 million UAE residents have subscribed to the scheme since it came into effect, with the enrollment deadline ending on October 1. Workers who failed to sign up by this date faced a Dh400 fine.
A Dh200 fine is imposed on subscribers who fail to pay premiums for more than three months. Employees whose work permits were issued after October 1, 2023, must enroll in the scheme within four months, or face a Dh400 fine.
Both Emiratis and expatriates working in the federal government and private sectors are required to subscribe to the scheme. However, certain categories, such as investors, domestic helpers, temporary contract workers, juveniles, and retirees entitled to a pension, are exempt from this requirement.
