Unemployment Insurance Scheme UAE
The unemployment insurance scheme is mandatory for private and public sector employees.
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Qualified Policybazaar expert will assist you Losing a job involuntarily can take a serious toll not just on your finances but also on your mental health and other aspects of life. This is where the unemployment insurance scheme comes into play in the UAE. The plan is ergonomically designed to help the employees of the private or public sectors financially in case they lose their jobs due to reasons beyond their control.
Not only does this ensure an income stream during the unemployment phase, but it also motivates the unemployed individuals to look for new opportunities. Read on to find out more about the unemployment insurance scheme.
What is the Unemployment Insurance Scheme?
Also known as the Involuntary Loss of Employment (ILOE) scheme, the unemployment insurance scheme is a government-operated scheme offering financial assistance to expatriates and UAE nationals in the public or private sectors in case they lose their job involuntarily.
The objective of this insurance scheme is to make sure that the unemployed can continue to lead a decent lifestyle while they continue to look for a new opportunity.
What is the Importance of the Unemployment Insurance Scheme?
So far, it is understood that this scheme offers a financial safety net for unemployed individuals and their families in times when there is financial instability.
The following are some other unemployment insurance scheme benefits —
Step |
Description |
|---|---|
| Much Needed Income Protection | It provides an essential income stream to cover the living expenses like utilities, rent, and groceries. |
| A More Motivated Workforce | The unemployment insurance scheme is designed keeping in mind to offer motivation and stability to the employees across pan UAE. The aim is to foster economic growth and reduce the financial burden on the employees. |
| Support for Expatriates | It offers expats financial security and helps handle the challenges that come with sudden job loss. |
Is the Scheme for Unemployment Insurance Mandatory?
The unemployment insurance scheme is mandatory for private and public sector employees. The scheme was introduced via the Federal Decree Law No. 13 of 2022, which came into effect from January 01, 2023.
Its benefits extend to employees in free zones like the Dubai International Financial Centre and Abu Dhabi Global Market. If you fail to register for the scheme within four months of joining the job, you will have to pay a fine of AED 400.
Who is Qualified to Apply for the Unemployment Insurance Scheme?
Here’s who is qualified to apply for the unemployment insurance scheme —
| Employees in Public and Private Sectors | Expatriates and Residents |
|---|---|
| This category of individuals includes government administrators, healthcare professionals, teachers, corporate professionals, and more. | The unemployment insurance scheme covers expatriates and residents working in a multinational corporation, ensuring that the financial safety net extends to diverse demographics. |
Note – This scheme does not cover business owners, temporary employees, part-time workers, domestic workers, and investors.
How to Apply for the Unemployment Insurance Scheme?
Employees can easily apply for or subscribe to this scheme via ILOE’s official website or the official mobile application without having to pay any additional costs. Here’s how it happens —
- Visit www.iloe.ae and click on the ‘Subscribe Here’ button on the homepage.
- You will, then, be taken to the application portal. Under the ‘Individual’ category, select whether you work in the public or private sector.
- Once you have made the selection, log in using your Emirates ID number. Provide the mobile number where you will receive the OTP for authentication.
- Once you are logged in, you will be categorised into either Category A or Category B as per your salary.
- You can subscribe to the unemployment insurance scheme for one or two years. If you select a one-year subscription, you would need to pay the premium monthly, half-yearly, quarterly, or annually.
- After you select the plan, you will be able to find details like the scheme start date, insurance cost, expiry date, and total premium payable on the next screen.
- Wind up the registration process and click on the ‘Pay Now’ button, and provide your email address where you will get the insurance certificate.
- You will be directed to the secure online payment portal. Make the payment.
- After you make the payment, you will receive the confirmation and insurance certificate at your registered email address.
- You can also download the PDF copy of your insurance certificate from the portal itself.
If you fail to apply for the unemployment insurance scheme via the official sources, you can register for it through alternate channels, including —
- Exchange Centres like Al Ansari Exchange branches across the UAE (only cash payments are accepted)
- MOHRE Business Centres like Tasheel and Tawjeeh centres
- SMS for Etisalat Customers – They can send their Emirates ID to 2120
- Payment Kiosks via Upay and MBME Pay machines in supermarkets and malls
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