The Unemployment Insurance program is a type of social security and insurance that offers residents and Emiratis employed in the public and private sectors financial assistance in the event that they are fired by their employers. By drawing and keeping the best international talent, it seeks to create a competitive knowledge economy and guarantee that the unemployed can continue to live decent lives.
What is the Unemployment Insurance program?
It is a program designed to provide the insured individual with a set amount of money for a predetermined amount of time in the event that they become unemployed.
Application scope of the plan
According to the specified eligibility requirements, all workers in the federal government and private sectors must enroll in the program by acquiring an insurance policy that will protect them in the event that their employment ends. Workers in the following categories are not eligible for the program:
- Investors, who own the business where they work;
- domestic helpers;
- and workers on temporary contracts
- juveniles (those under the age of eighteen);
- e. Emirati citizens who have fulfilled the requirements for retirement or retirees who have taken a pension and taken a new position.
The scheme’s goals
The Unemployment Insurance program’s goals are to:
- Give employees a social safety net so they and their families can live comfortably until they find another job.
- guarantee the insured person’s income availability for a maximum of three months while they are unemployed.
- Encourage Emiratis to work in the private sector so they can take advantage of government empowerment and support.
- increase Emirati talent’s ability to compete on the job market and improve the nation’s labor market’s appeal.
- Attract and retain the nation’s top talent and skilled workers from around the world.
Value of a subscription
In accordance with the categories listed below, the employee must pay the insurance premium for a basic insurance package.
- First category: The premium is no more than 5 AED per month if the employee’s base pay is less than 16,000 AED.
- Second category: The premium is no more than 10 AED per month if the employee’s base pay exceeds 16,000 AED.
If their basic salary is not specified in their employment contract, employees who are paid on a commission basis (a percentage of sales or profits) may select either subscription category.
Restitution
- For three months, the insured employee is entitled to 60% of the subscription salary, up to a maximum of:
- The first category receives 10,000 AED per month, while the second category receives 20,000 AED per month.
Subscription and payment channels for premiums
Subscriptions and premium payments for the Unemployment Insurance program can be made through nine different channels. They are:
- The Involuntary Loss of Employment Scheme’s official website,
- the ILOE app on Google Play and the App Store,
- the ILOE business service centers (Tasheel and Tawjeeh),
- ATMs and kiosks (MBME PAY, C3PAY5, UPAY),
- exchange companies (Al Ansari Exchange centers or app),
- certain banks’ mobile applications
- (SMS to du and Etisalat),
- and the BOTIM app on Google Play and the App Store.
These channels work together with ILOE and the Ministry of Human Resources and Emiratization.
How can I make a compensation claim?
To make a claim for reimbursement,
Within 30 days following the termination of the employment relationship, the employee (insured person) must file a claim with the insurance service provider. The service provider will then review the claim and provide a response, guaranteeing that payment is made within two weeks of the submission date.
Requirements for making a compensation claim
The following requirements must be fulfilled in order to guarantee that the insured individual obtains the insurance coverage:
- The insured individual must have had a system subscription for a minimum of 12 months in a row.
- All insurance premiums must have been paid by the insured in accordance with the selected schedule.
- The insured individual is required to provide proof of unemployment for reasons other than resignation.
- The insured individual must not have been fired for disciplinary reasons in accordance with the federal government’s labor and human resources laws or other applicable laws.
- After the employment relationship ends or the labor dispute is resolved, the claim must be filed within 30 days.
- There must be no pending work absence complaints against the insured individual.
- Fraud, dishonesty, or the establishment of the employer’s falsity should not be the foundation of the claim.
- Regardless of whether they caused damage, strikes or non-peaceful protests cannot be the cause of the job loss.
- The insured individual needs to be in the nation.
If a worker or employee finds another job while they are eligible for compensation, their benefits will be suspended.
penalties for failing to enroll in the unemployment insurance program
A worker will be fined 400 AED if they choose not to enroll in the Unemployment Insurance Scheme.
A worker will be fined 400 AED for failing to pay the premiums.