If you haven’t had Umployment Insurance already, you can enroll in the obligatory Unemployment Insurance Scheme at a variety of locations in the UAE. The Involuntary Loss of Employment (ILOE) program provides financial stability to employees who lose their jobs for reasons other than termination or disciplinary action while they hunt for new employment. The program was changed and the last date is shifted from June 30 to October 1, 2023.
What is employment insurance?
Employees are responsible for paying subscriptions for unemployment insurance. If they quit their job at least 12 months after the insurance subscription started, they’ll get 60% of their base income for up to three months. Benefits are calculated using their average basic wage for the previous six months.
Who is Eligible for unemployment insurance?
Emiratis and residents who work in private and government sectors.
Employees are not eligible if they are:
- Business owners who own and manage their businesses
- Investors
- Household workers
- Temporary employees
- Less than 18 years old
- Retired and get pensions
How to Pay for Unemployment Insurance Online
In the UAE, you may easily subscribe to ILOE online, kiosks, and service locations. Here we will discuss five way to pay for Employment Insurance or Unemployment Insurance.
- Dubai Insurance website (www.diniloe.ae)
- ILOE mobile app
- Exchange Centers
- Telecommunications bills
- SMS
- Bank mobile apps
- Business centres
What is ILOE?
The UAE government created the Involuntary Loss of Employment (ILOE) Insurance Scheme to offer short-term financial support to workers who lost their jobs for reasons other than disciplinary action or resignation until they found a new position.
1. Unemployment Insurance Through ILOE website and app
Through the ILOE portal and ILOE mobile application, which are both available for Apple and Android devices, you can instantly apply for the unemployment insurance program. Utilizing the ILOE website and app, one can sign up for the unemployment insurance program without paying a penny. The business that oversees the ILOE Insurance Pool, Dubai Insurance, runs both of these platforms.
2. Through AL Ansari Exchange Centre
It is very simple and easy to subscribe and pay for ILOE insurance through Al Ansari Exchange. To enroll and get the security and peace of mind you deserve, just pay by any one of our branches.
Currently, Al Ansari Exchange is where you may sign up for and pay for the ILOE insurance. All you have to do is go to one of the branches and take the following actions:
- Provide your Emirates ID.
- Include your cell phone number.
- Obtain the ILOE insurance form.
- Choose the length of your coverage (one or two years).
- Select your preferred method of payment: monthly, quarterly, semi-annually, or annually.
After making the payment, you will be formally registered in the program and given a receipt as proof of your payment.
3. Pay Through kiosk Machine
Additionally, you have the choice to join the ILOE program using kiosk devices. The official subscription channels in the UAE are currently two different payment service providers: MBME Pay and uPay. You can find a kiosk close to you by searching for a ‘MBME Pay’ or ‘uPay’ kiosk on a mobile web map application. These kiosks have hundreds of locations around the United Arab Emirates.
4. Subscribe through Mobile Bank Application
You can currently enroll in the unemployment insurance program using the C3Pay app and card. Edenred, a WPS (Wage Protection System) agency approved by the Central Bank of the UAE, offers C3Pay as one of its products.
Through the mobile app “C3Pay,” which is available for Apple and Android smartphones, you can instantly subscribe to the ILOE insurance plan if you have a C3Pay card or account.
5. Tawjeeh or Tasheel Center
A Tawjeeh or Tasheel service center is another location where you can enroll in the ILOE program. The Ministry of Human Resources and Emiritization (MOHRE) runs several centers, which offer labor-related services to workers and employers in the private sector.
You must present your Emirates ID and cellphone number at the center in order to sign up for the program.
You can visit https://www.mohre.gov.ae/en/services/approved-services-centers.aspx to locate a MOHRE service center in your area.
Unemployment Insurance Scheme Cost?
The insurance coverage compensation, according to MOHRE, is computed monthly at a rate of 60% of the basic income and is paid for a maximum of three months following the date of unemployment.
THE TWO CATEGORIES FOR ENROLLING IN THE SCHEMECategory A:
• Employees who are earning a basic salary of Dh16,000 or less.
• Insurance cost: Dh5 per month (or Dh60 annually)
• Monthly compensation: 60 per cent of your basic salary, up to Dh10,000Category B:
• Employees earning Dh16,000 and above
• Insurance cost: Dh10 (or Dh120 annually)
• Monthly compensation: 60 per cent of your basic salary, up to Dh20,000
Fine and Penalty of Unemployment Insurance
A fine of Dh400 will be imposed if you are not enroll in the program in the deadline.
The insurance certificate will be revoked and you will be charged a fine of Dh200 if you don’t pay the insurance premiums on time in accordance with the frequency of payments you choose.
Eligible, compensation benefits of Employment Insurance:
The monthly compensation is 60 percent of the average basic salary over the most recent 6 months prior to the Involuntary Loss of Employment
For Category A: Maximum claim benefits: AED10,000 per month
For Category B: Maximum claim amount: AED20,000 per month
Maximum compensation for any one claim: 3 consecutive months
Maximum period of benefits: During the insurance period over the entire work life of the Insured in the United Arab Emirates the aggregate Claim Payment shall not exceed 12 monthly benefits (regardless of the number of claims submitted)
