Today's Edition
Sami Abdel Raouf (Dubai)
The Ministry of Human Resources and Emiratisation has announced that 7.5 million employees have subscribed and registered for the unemployment Insurance system since it came into effect on January 1, 2023.
The ministry confirmed that this figure is a significant development, a clear success, and a great response to the initiative, especially since it was recently introduced.
The system includes employees in the federal government sector and the private sector, and includes both citizens and residents. Those excluded from the system include investors, owners of businesses, domestic helpers, temporary contract workers, minors under 18 years old, and retirees receiving a pension who have taken up a new job.
A fine of Dh400 will be imposed on workers who do not subscribe, and workers can check for fines for nonsubscription through the ministry’s smart application, website, and business service centres.
The ministry said that the high number of subscribers to the system is in alignment with Federal Decree-Law No. (13) of 2022 regarding Unemployment Insurance, and demonstrates public awareness of the benefits of the system.
The system aims to provide social protection for citizens and residents in the case that they lose their jobs, and offers a means of providing a decent life for them and their families until an alternative job opportunity is available. All objectives aim to support the broader goal of attracting and retaining the best talent in the country’s labour market.
The ministry stressed the necessity for those not yet subscribed to register, adding that subscribing is the responsibility of the employee. However, employers do have the option to register their employees in the system free of cost.
There are several channels available to register, including the Insurance Pool’s website (www.iloe.ae) and smart application, or through self-service kiosks, business service centres, currency exchange centres, and bank applications.
The system offers two subscription tiers depending on basic salary, with fees set at Dh5 or Dh10 monthly, and maximum compensation capped at Dh10,000 or Dh20,000, respectively. Eligibility for compensation requires a minimum 12-month subscription, with payouts calculated at 60% of the basic salary, or the ceiling amount according to the system in the last six months before unemployment.
The period for disbursing compensation does not exceed two weeks from the date of the claim, and the insurance programme compensates the insured with a cash amount for a maximum period of three months, provided they do not resign or are terminated for disciplinary reasons. The right of the insured to claim compensation ceases upon leaving the country or joining a new job.
The ministry confirmed that the unemployment insurance scheme has been a driving force for economic growth.
This system reflects the wise UAE leadership’s interest in developing the country’s business environment, enhancing its position as a preferred destination to live and work, the ministry added.
