UAE is known for its employee-friendly policies, and the recent unemployment insurance is one of these schemes. In an attempt to provide financial security to workers after the loss of jobs, the Ministry of Human Resources and Emiratization (MoHRE) launched an exclusive unemployment insurance scheme, ILOE (Involuntary loss of employment), in 2022, under which employees will be able to receive a fixed cash amount for up to three months following the end date of employment.
In this article, we’ll walk you through the specifics of unemployment insurance UAE, including recent updates, eligibility criteria, cost, cash benefits, and different methods of subscription. So, without any further ado, let’s get started!
Unemployment Insurance UAE: Introduction, Price and Compensation:
The unemployment insurance scheme applies to all Emiratis and foreign workers in UAE, both in the private and federal sectors. While it’s a mandatory requirement for private and public employees, workers of the free zones are open to choose whether or not to enroll in the insurance based on their own convenience.
As per the program, if a worker loses his job as a result of termination, not resignation, he will be entitled to get a cash amount equal to 60% of his basic salary for a total of three months starting from the first day of being jobless. This amount will be provided in return for the minimal premium the employee pays every month during his job period.
The premium amount to be paid has been divided into two categories (A and B) based on income level. Consequently, the maximum cash compensation offered to these two groups also differs.
- Employees who have basic salaries of 16000 AED or lower will be paying 5 AED as a monthly premium, which equals 60 AED annually. As a result, they can get a maximum compensation of 10,000 AED per month.
- Employees who have basic pay higher than 16000 AED will have to pay 10 AED monthly, which totals up to 120 AED yearly. The maximum compensation for this group is up to 20,000 AED per month. It means that workers cannot get insurance cash greater than that even if 60% of their basic salary exceeds 20k AED.
For convenience, workers are given the choice to submit their insurance charges monthly, quarterly, semi-annually, or yearly. Nonetheless, VAT (value-added taxes) will apply to these payments.
Although the basic benefits are limited to the above-mentioned compensation, workers can avail of extra perks by buying additional packages from their insurance company. However, it is totally optional.
Deadline and Fines Updates
According to the authorities, subscribing to job loss insurance is not a choice but a compulsion for all private and public employees. In accordance with that, the subscription process was initiated in Jan 2023, and a deadline of 1 October 2023 was given to all employees to purchase their respective insurance plans. Over 6 million workers have entered the new insurance plan since then.
- Employees who fail to meet the deadline will have to pay an additional fine of 400 AED.
- If the worker has registered within the deadline but has not paid his insurance fee for more than 3 months after due date, he’ll have to pay a penalty of 200AED. His insurance will also get canceled in this case.
- Employees who fail to settle their fines within the due date of three months will have their penalties deducted from either their salary or gratuity as decided by MOHRE. (Clause 4, Article 9, Ministerial Resolution No. 604, 2022)
- If the employees are fined because of not complying or subscribing to the ILOE insurance program, they will not be qualified to get a new work visa. (Article 10, Ministerial Resolution No. 604, 2022)
To be able to receive cash benefits, it is compulsory for all employees to be insured for at least 12 continual months. That means you must have been registered to the program 12 months prior to your termination and have been paying your insurance charges every month consecutively.
In addition, you must meet the following criteria to be able to claim your compensation amount successfully.
- Made timely premium payments
- Ensured uninterrupted subscription for three continual months
- Have not been unemployed due to resignation, disciplinary causes, or agitated strikes
- Submitted for claim within 30 days of unemployment
- Have No pending complaints relevant to work absence
- Have not cheated or deceived while claiming
- Must be legally present in the UAE
Compensation can be suspended if
- The employee has been fired due to disciplinary causes as per UAE Labor Law
- Any fraud has been found in the worker’s claim
- The employing company of the worker is fictitious
Who is not eligible?
The following people cannot register for the Unemployment Insurance UAE program.
- Business owners and investors
- Household/Domestic Employees
- Temporary workers with short-term contracts
- Youngsters less than 18 years of age
- Retired pensioners who have started working with new companies
How to Claim Unemployment Insurance Money in UAE?
To receive the compensation, it is mandatory for employees to file claims within 30 days of losing their jobs. The claims can be filed either through online insurance portals or apps or by visiting the respective contact centers. Once filed, employees will get their compensation amount transferred into their registered accounts by the insurance companies within two weeks.
Keep in mind that compensation is calculated according to the 60% of the basic salary you had for the past 6 months before unemployment. The maximum duration for which you can receive the insurance money against one claim is three months.
List of Companies Providing Job Loss Insurance in UAE
Dubai Insurance Company has been appointed as the official representative for the nine companies pool providing and dealing with job loss insurance schemes. Employees can subscribe to the insurance plan and file their claim with any of these companies, as mentioned below.
How to Apply for Unemployment Insurance UAE, Online and Offline:
To make the subscription process convenient, the UAE government has introduced several online and offline channels that employees can use to register and pay for the job loss insurance scheme. These include the official insurance pool site (ILOE) and others as follows:
- ILOE Website
- ILOE App
- Kiosk Machines
- Tele Communication Bills
- Banking Apps and specified ATMS
- Al Ansari Exchange Centers and Businessmen Service Centers
- BOTIM APP
Here’s how you can subscribe to Unemployment Insurance UAE and submit your premiums using the above channels.
- Open the official ILOE portal https://www.iloe.ae/
- Click the Red Subscribe Here button on the home page. A pop-up notification will appear, displaying the Red Subscribe Here button at the bottom. Press it again
- You’ll be directed to the login portal of ILOE. Choose your relevant employment sector under the individual box. It can be Private, Federal, or Non-registered/Freezone
- Write your Emirates ID and Phone number details and hit on request OPT. You’ll receive a one-time password via SMS
- Write the OPT and press the submit button
- You’ll be signed in to your personal IOLE account, and an insurance category, A or B, will be assigned to you, depending upon your submitted salary details. You can also view details on the insurance’s start and expiry date and the amount to be paid on your dashboard. Make sure to confirm the personal information displayed is correct
- To pay your unemployment insurance UAE premium, Choose your policy payment plan (yearly, 6 months, 3 months, 1 month). The payment amount due will appear relevant to your chosen plan
- Agree to the terms and conditions and Press the Pay Now Tab. Before going to the payment page, you’ll be asked to give your email address, where the certificate of your ILOE insurance payment will be sent afterward
- Write your credit or debit card details from which you want to pay and press confirm payment
- After the transaction is successful, you’ll receive a confirmation notification/insurance certificate.
- Install the ILOE APP on your phone Apple store or Play store
- Open the downloaded application and choose OTP to log in
- Choose your relevant work sector
- Fill in your phone number and Emirates ID number and request the OPT
- Write the OTP sent to you and press submit
- You’ll be logged into your personal dashboard and assigned category A or B. Confirm your personal details are correct
- Select your preferred payment plan and proceed with the Pay Now button. Enter your email, and press ok
- Fill in the credit/debit card details on the payment page and hit pay tab
- A confirmation notification will be sent to you after a few seconds
Employees can also register for unemployment insurance UAE by using official kiosk machines of Upay or MBME Pay. These machines are present at several locations in UAE, which can be located easily through phones.
Phone – ILOE Call Center
If you are not a tech-friendly person, you can directly call the ILOE call center and get your unemployment insurance UAE without any hassle. Here’s how
- Dial the official call center number of ILOE 600 599 555
- Choose language. You’ll be given instructions to perform different actions. Choose the option to talk to the agent (press 3)
- The agent will require the following information for your subscription
Emirates ID, Email, Phone Number, Full Name, DOB, and your labor card or work permit number
The labor card number is assigned officially by MOHRE to all workers in UAE. If you don’t know yours, you can find it by downloading and logging into the MOHRE App. People who work in the free zone may get this number from their respective authorities
- Once details are provided, the agent will access your employment details, including your salary, company, and designation. You’ll be informed of the insurance category you fall in based on your salary amount
- Next, you’ll be asked to choose your preferred payment plans. You can choose to pay your premium monthly, after 3 months, after 6 months or after 1 year
- After that, you’ll receive an email from ILOE containing a payment link and insurance details
- Navigate to the Pay Now tab in the email. It will lead you to the payment page, where you can enter your card details to transfer your premium amount online
- After some time, you’ll receive a payment confirmation email with the official insurance certificate attached
This option is available to the users of Etisalat. Here’s how you can get your unemployment insurance UAE through SMS.
- Open a new message and type ID, give space, then write your Emirates ID Number (for example, ID 34232312483)
- Send the typed message to 2120
- If you have a prepaid SIM, the subscription cost will be taken from your available account balance. If you have a post-paid sim, the subscription charges will be added to your account bill, which you can clear at the end of the month
Bank Apps and ATMS
Only selected bank apps and ATMs under the insurance pool companies can be used to purchase job loss insurance in the UAE. One such app is C3PAY by Edenred. If you have a C3 Pay card or account, you can buy your unemployment insurance UAE subscription by using the C3 Pay App as follows.
- Install C3Pay mobile application Android, iOS
- Log in using your UAE phone number and password
- You’ll see the job loss insurance section on the home page. Click on the get insurance button under it
- Choose your payment option and press next. It can be monthly or yearly on the C3PAY app
- Accept terms and conditions. A summary of your payment will show up. Review it and click on Pay Now
- Your insurance charges will be paid, and you’ll get a confirmation notification on your phone number within 48 hours
Al Ansari Exchange Centers and Businessmen Service Centers
Employees can also visit MOHRE-approved exchange centers and service centers in person to get subscriptions to their relevant job loss insurance programs and pay their pending installments. However, note that you must take your Emirates ID and phone number details with you when you go to the centers. The representative there will fill out the insurance form on your behalf and get you registered as per your desired payment plans.
To locate an al Ansari exchange center near you, Click Here
To find a nearby Businessmen service center, Click Here.
You can also use BOTIM App to sign up for ILOE insurance services. Here’s how.
- Download BOTIM application from Playstore or Appstore
- Open the application, go to the ILOE insurance section under the Explore Page
- Provide your email address and Emirates ID number. You’ll be automatically given the insurance category based on your job details
- Go to the payment page to submit your subscription charges online through BOTIM
What is the fine for a late subscription to Unemployment insurance?
If you have not purchased the insurance plan by 1 October 2023, you’ll have to pay a fine of 400 AED.
Would I be charged a fine if I miss my insurance installment?
Yes, if you have missed your installment for over three months after the due date as per your chosen payment frequency plan (annually, semi-annually, quarterly, or monthly), you’ll be charged a fine of 200 AED.
Do I have to repurchase the insurance if I switch my job?
No, the change in job won’t affect your insurance as long as you stay compliant with the required subscription conditions. That means you won’t have to cancel the previous insurance and subscribe to a new one. However, you’ll have to provide your updated employment details to the insurance company immediately. Moreover, if you are switching from an A-category job to a B-category job, you’ll have to pay the difference in premium amounts. (60AED annually for category A, 120 AED annually for category B)
What should I do if my subscription fails on the ILOE portal?
If you have registered for Unemployment Insurance UAE by inputting your details on the ILOE site as per the steps mentioned above and no details of your employment appear, here is what you can do.
- If you belong to the private sector, you can submit a technical support ticket on the MOHRE’s official portal. https://www.mohre.gov.ae/en/contact-us.aspx, call their helpline at 600590000 or send a complaint email with details of your issue to email@example.com.
- If you are from the federal sector, you’ll have to report your issue to the HR department of the company you work in.
What is the maximum amount of money you get from job loss insurance in UAE?
Employees registered under unemployment insurance for 12 months can receive a maximum amount of 20000AED per month, given that they meet the compensation criteria.
Can my employer register me for the unemployment insurance scheme?
Yes, employers can register their workers directly to the ILOE scheme, but the premiums must be paid by the workers, and there must be a mutual agreement between both. Your employers cannot pay for the insurance on your behalf.
After how much time will I get my insurance money?
You’ll receive your insurance compensation within 2 weeks of filing your claim request.
What benefits do I get from the unemployment insurance scheme?
It gives you financial security in incidences of job loss. You can get a cash amount equal to 60% of your basic salary for three months after you lose your job.
What’s the extended deadline to apply for unemployment insurance in UAE?
1 October 2023.
The newly launched Unemployment Insurance UAE scheme is a significant step towards improving the employee’s well-being in the country. By providing financial support to the unemployed workers, the authorities aim to create a healthy work support system that will not only retain the current talent in the emirates but also attract many new workers to choose UAE for their professional careers.
We hope this article resolves all your queries about UAE’s mandatory job loss insurance program. If you are still left with any questions, please feel free to ask in the comments section below.