Starting January 1, 2023, all Emirati citizens and foreign workers are mandated to enroll themselves in the Involuntary Loss of Employment (ILOE) Scheme or the unemployment insurance scheme.
A grace period of six months (until June 30, 2023) is given to the workers in the UAE. Exempted from the scheme are employees working in free zones.
Those who fail to subscribe to the insurance within the grace period will be fined AED400 by the Ministry. A fine of AED200 is also imposed on the insured if he or she fails to pay the prescribed insurance premiums for more than three months.
Unemployment insurance is divided into two categories:
Category A – Employees with a basic salary of AED16,000 or less will need to pay a monthly insurance premium of AED5 or AED60 every year.
Category B – Employees with a basic salary exceeding AED16,000 will need to pay AED10 per month or AED120 every year.
Workers may opt to pay the premium on a monthly, quarterly, half-yearly, or on annual basis.
To claim the benefits, workers must pay the monthly premium for at least 12 consecutive months.
The compensation for workers who lost their jobs in the country will be calculated based on their salary. It will be paid for no more than three months from the date of unemployment.
It is calculated at up to 60 percent of the salary. For example:
Category A – Maximum claim benefits AED10,000 per month
Category B – Maximum claim benefits AED20,000 per month
Workers who wish to subscribe to the unemployment insurance scheme may opt to register via Dubai Insurance’s portal.