The UAE mandatory unemployment insurance has been updated to include Freezone and semi-government entity employees.
In a new announcement, a pop-up on the official portal states “Do you work in semi-government entities or companies registered in a UAE Freezone? You can subscribe now by clicking on subscribe here and proceed to Non-Registered in MoHRE.”
The update stipulates that employees who lose their jobs will receive 60 percent of their basic salary for up to three months from their date of employment. Employees could get a maximum payout of up to AED 20,000 per month.
Announced in January 1, 2023, the UAE unemployment insurance scheme was made mandatory for employees in the country. However, semi-government entities and Freezone employees were previously exempt.
According to authorities, those who do not apply for the unemployment insurance schemes will face fines starting at the end of the grace period on June 30.
Prices for unemployment insurance range from AED5 to AED10 per month, and are available from a select group of insurance agencies.
Last month, it was reported that more than one million employees in the UAE signed up for the scheme since it was launched.
Here is all you need to know about the mandatory insurance scheme:
- How to apply: Visit the iloe.ae website, click subscribe now and follow the steps
- Cost: AED5 per month for those earning a basic salary of AED16,000 or less, AED10 per month for those with a salary higher than AED16,000
- Deadline: Six months until June 30. Workers who change their visa or begin work in the UAE after January 1, 2023, will have a grace period of four months
- Fine for non-subscripton: AED400
- Fine for missing instalment premium: AED200
- Exempted categories: Investors/company owners, domestic helpers, temporary contract workers, juveniles and retirees
- Subscription channels: Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS
- Minimum subscription period: 12 months for eligibility of pay-out
- Maximum compensation: Three months
- Non-applicable: Fraud or deceit involved in his claim or if the establishment where they work for is fictitious, existing complaints, result of non-peaceful labour strikes or stoppages
The following criteria must be met to be eligible for compensation, according to the Insurance Pool website:
- There must be a minimum subscription period of 12 consecutive months for the insured in the scheme. Provided that there is no interruption in the subscription for three consecutive months.
- The Insured was committed to paying all the insurance premiums due on time.
- The Insured proves that the reason of unemployment is not due to resignation.
- The Insured may not be dismissed for disciplinary reasons under the Labour Relations Law and the Human Resources Law of the federal government in addition to any applicable legislation.
- Submit the claim within 30 days from the date of loss of the work relationship or the settlement of the labour complaint referred to the judiciary.
- The Insured worker should not have an existing complaint related to the absence from work.
- The Insured shall not be entitled for compensation if there has been fraud or deceit involved in his claim or if the establishment where they work for is fictitious.
- The Loss of Employment should not be the result of non-peaceful labour strikes or stoppages, whether they result in harm or not.
- The Insured must be legally present in the UAE.
