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UAE.. Beginning to apply the fine to non-subscribers to the unemployment insurance system

The first of October

 

As of today, the Ministry of Human Resources and Emiratisation has begun imposing a financial fine on non-subscribers to the unemployment insurance system, after the deadline for subscription expired yesterday, as a fine of 400 dirhams is scheduled to be imposed on those covered by the system who are not participating in it, whether workers in the sector. The federal government or the private sector, whether citizens or residents, are excluded from registration in the unemployment insurance system: the investor (the owner of the establishment in which he works), auxiliary workers, workers on a temporary contract, juveniles under 18 years of age, and a retiree who receives a retirement pension and has joined a new job.

 

The Ministry’s latest statistics revealed that about 5 million and 730 thousand employees have subscribed to the unemployment insurance system since its implementation on January 1, 2023, until September 25, 2023.

 

 

 

 

 

 

 

Social protection

 

 

 

 

The Ministry had called on those included in the system in accordance with the law in previous times to participate in it to avoid the fine and to benefit from the benefits offered to them by the system, which aims to provide a social protection umbrella for workers, both citizens and residents, to ensure a decent life for them and their families until an alternative job opportunity becomes available, as well as attracting a better job. Global talent and preserving it in the country’s labor market.

 

The Ministry stated that the responsibility for participating in the system falls on the employee in accordance with Federal Decree Law No. 13 of 2022 regarding unemployment insurance, while the option is available to employers to register their workers in the system without bearing any costs on the employer.

 

 

 

 

Channels

 

 

 

 

There are several channels available for registration in the system, including the Insurance Complex’s website www.iloe.ae, the ILOE Insurance Complex’s smart application, or via Kiosk self-service machines, business service centers, exchange centers (such as Al Ansari Exchange), and smart phone applications for banks and banks. The unemployment insurance system includes remote There are two categories of work, the first includes those whose basic salary is 16 thousand dirhams or less, and the value of the insured employee’s subscription within this category is 5 dirhams per month (or 60 dirhams annually), and the maximum value of monthly compensation is considered 10 thousand dirhams.

 

 

 

 

The price of registration

 

 

 

 

As for the second category, it includes those whose basic salary exceeds 16 thousand dirhams. The subscription value for this category is 10 dirhams per month or 120 dirhams annually, and the maximum value of monthly compensation is 20 thousand dirhams. The compensation is due on the condition of participating for at least 12 consecutive months in the insurance, and it is dropped. The insured has the right to claim the compensation value if he leaves the country or joins a new job. The period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim. The insurance program compensates the insured with a cash amount for a period not exceeding three months, provided that he does not resign or is dismissed for disciplinary reasons. The compensation that an eligible employee receives is 60% of his basic salary in the last six months before being unemployed.

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