SAMI ABDUL RAOUF (ABU DHABI)
The Ministry of Human Resources and Emiratisation (MoHRE) reported that the number of subscribers in its Unemployment Insurance Scheme had risen to over eight million since its launch in January 2023 through July 30, 2024, underscoring the scheme's success and the growing awareness of its importance among eligible participants.
The ministry highlighted that the Unemployment Insurance Scheme provides an important social safety net, ensuring a decent standard of living for workers in both the federal government and private sectors, including citizens and residents.
In the event of job loss, the system provides insured individuals with a cash compensation for up to three months, until they secure alternative employment.
MoHRE urged subscribers to adhere to the payment schedule for insurance premiums, warning that non-payment could result in fines of Dh200 and the cancellation of the insurance policy.
Certain groups, including investors (owners of the establishments they work in), domestic workers, temporary contract workers, individuals under 18, citizens eligible for retirement, and pensioners who have rejoined the workforce, are exempt from the scheme.
Registration for the system is available through multiple channels, including the insurance pool's call centre (600599555), website (www.iloe.ae), ILOE smart app, self-service kiosks, ATMs, business service centres, money exchange centres, bank and financial institution apps, SMS, and telecom companies.
The unemployment insurance system is divided into two categories.
The first category covers those with a basic salary of Dh16,000 or less, with a subscription fee of Dh5 per month and a maximum monthly compensation of Dh10,000.
The second category includes those with a basic salary above Dh16,000, with a subscription fee of Dh10 per month and a maximum monthly compensation of Dh20,000.
To be eligible for compensation, insured individuals must have been subscribed to the scheme for at least 12 consecutive months.
Compensation claims are forfeited if the insured leaves the country or finds new employment.
The compensation payment period is capped at two weeks from the date of claim submission, provided all conditions and eligibility criteria are met.
The scheme compensates with a cash amount for up to three months, calculated at 60 percent of the basic salary for the last six months before unemployment, provided the resignation was not voluntary or due to disciplinary reasons.
Non-subscribed workers can check and pay fines through the ministry's smart app, website, or approved business service centres.
Digital channels also offer instalment payment options for fines to ease the burden on users.
MoHRE considers requests for fine exemptions if supporting documents are provided, with applicants notified of the outcome within 15 working days.
MoHRE emphasised the positive impact of the scheme, noting that it is a key component of the legislative framework designed to attract and motivate Emirati talents and global skills, thereby driving the growth of the country's economic sectors.
It urged those covered by the scheme to expedite their subscription to enjoy the insurance benefits, emphasising the importance of encouraging employers to motivate their employees to subscribe to the system.
The scheme is an innovative job security mechanism that doesn't impose any additional costs or burdens on employers.
It is one of the pioneering initiatives globally, offering innovative solutions to the challenge of funding social security coverage for workers, a topic of global discussion.