Media ININ Economy We Trust
October 4
The Ministry of Human Resources and Emiratisation announced that more than 6 million and 500 thousand employees have subscribed to the unemployment insurance system since it entered into force on January 1, 2023 until October 1.
The system includes workers in the federal government sector and the private sector, both citizens and residents, and the investor (owner of the establishment in which he works), auxiliary workers, temporary contract workers, juveniles under 18 years of age, and a retiree who receives a retirement pension and has joined a new job are excluded from registration in the system.
The Ministry explained that the worker’s failure to register himself in the system will result in a fine of 400 dirhams, and that the worker can verify whether fines have been imposed on him for not participating in the system through the Ministry’s smart application, website, and business service centers.
The Ministry appreciated the commitment of subscribers to the unemployment insurance system, “which confirms their keenness to comply with Federal Decree Law No. (13) of 2022 regarding unemployment insurance, and their awareness of the benefits provided to them by the system, which aims to provide a social protection umbrella for citizen workers.” And residents to ensure a decent life for themselves and their families until an alternative job opportunity becomes available, as well as attracting and retaining the best international talent in the country’s labor market.”
The Ministry stressed the need for those who have not yet subscribed to the system to register in it, noting that subscription falls within the employee’s responsibility, while the option is available to employers to register their workers in the system without bearing any costs on the employer.
There are several channels available for registration in the system, including the Insurance Complex’s website www.iloe.ae or the ILOE Insurance Complex’s smart application, or through Kiosk self-service devices, business service centers, exchange centers (such as Al Ansari Exchange), and smart phone applications for banks and banks.
The unemployment insurance system includes two categories, 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 10 thousand dirhams.
The second category 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.
Compensation is due on the condition of participating for at least 12 consecutive months in the insurance. The insured’s right to claim the compensation value is forfeited 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 sum for a period not exceeding three months, provided that he does not resign or is dismissed for disciplinary reasons.
The compensation received by the eligible employee is calculated at 60% of his basic salary or the ceiling amount according to the system in the last six months before unemployment.
