The Ministry of Human Resources and Emiratisation (MoHRE) has expanded the number of categories of employees who can subscribe to the UAE’s job loss scheme by adding two new classes. The scheme was made mandatory for private sector and federal government employees starting from January 1, 2023. Employees failing to subscribe by June 30 will be fined Dh400, and a fine of Dh200 will be imposed for failing to pay premiums for over three months from the due date.
Under the involuntary loss of employment (ILoE) insurance scheme, employees with a basic salary of less than Dh16,000 are required to pay Dh5 per month or Dh60 per annum plus VAT as a premium. They will be compensated with 60 percent of the average basic salary for job loss for three consecutive months. For employees with a basic salary of over Dh16,000, the premium is Dh10 per month or Dh120 per annum. The policy period is available for one or two years, and subscriptions can be made from Dubai Insurance, the ILoE website, Al Ansari Exchange, and ATMs.
As of early April, the number of subscribers exceeded one million since its launch. People working in semi-government entities or companies registered in a UAE free zone can subscribe to the ILoE scheme by proceeding to the “Non-Registered in MoHRE” link on the ILoE portal.