Here's How to Get 3-Months Salary Even After Job Loss in the UAE

The new Unemployment Insurance Scheme will go into effect on January 1, 2023, and employees in the UAE will be able to sign up for some kind of social security if they have been laid off.

The initiative will be accessible to employees of the federal government and the private sector, and subscription to the scheme is compulsory, according to the Ministry of Human Resources and Emiratisation (MOHRE). 

Employees will be compensated with a salary for up to three months in the case of job loss once they are eligible to receive compensation under the scheme.

To be eligible to use this social security system, employees must fulfill a number of requirements. In the federal and public sectors of the UAE, both expats and Emiratis are insured under the Unemployment Insurance Scheme. However, employees must also have worked in their past job for a minimum of 12 months in a row, starting from the day they signed up for the insurance plan, to be qualified to receive compensation under the insurance plan.

The categories that are exempted from unemployment insurance are Domestic helpers, juveniles below 18, Investors, Part-time employees, and Retirees who receive a retirement pension and have joined a new job.

MOHRE states that there won't be any compensation for employees who are fired for a disciplinary reason, those who have quit their jobs or who have moved away from the UAE, or who have started a new career.

How can I sign up for the scheme?
The initiative will be available for an employee to subscribe to as of January 1, 2023. According to MOHRE, these are all the paid channels employees will be able to access:
1. Website for Insurance Pool: www.iloe.ae
2. Al Ansari Exchange
3. kiosk machines
4. Payment methods for telecommunications bills (through du and Etisalat)
5. The "iloe" app for the Insurance Pool for smartphones etc.

 

 

 

 

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Calculation of the insurance Pay: A maximum of three months from the date of unemployment, the insurance coverage compensation is paid. It is computed on a monthly basis at a rate of 60% of the basic wage.

The insurance program is separated into two groups:
Employees with a basic salary of at least Dh16,000 fall under category 1.
• Monthly insurance cost: Dh5 (or Dh60 annually)
• Monthly compensation: up to Dh10,000 or 60% of your basic salary.
Employees making Dh16,000 or more are under category 2.
• Cost of insurance: Dh10 (or Dh120 annually)
• Monthly compensation: up to Dh20,000 or 60% of your basic salary.

According to MOHRE, the commission-based staff is also eligible to join the scheme.

The employee may pay the insurance on a monthly, quarterly, half-yearly, or annual basis, with the monthly cost varying depending on the category from Dh5 to Dh10. Value-added tax is applicable to the insurance policy's value (VAT).
Value-added tax is applicable to the insurance policy's value (VAT). Through the call center at 800 382467 or the website of "The Insurance Pool," dubins-wpp.ae, Employees can submit claims requests under the insurance scheme. 

The Dubai Insurance Company oversees "The Insurance Pool," a collection of insurance providers with operations in the United Arab Emirates. The legal organization in charge of offering insurance protection to employees covered by the UAE Workers Protection Programme was founded in 2018.

Here's how employees can claim their insurance-

The insured employee should submit a claim for compensation within 30 days after the date of unemployment, according to MOHRE. After losing a job, claims should be submitted within a maximum of 30 days. Compensation shall be given out within two weeks after the claim date and will not surpass three months per claim.

The insurance pool, which consists of 9 national insurance companies, is represented by Dubai Insurance Company:

1. Dubai Insurance Company
2. Abu Dhabi National Insurance Company
3. Al Ain Ahlia Insurance Company
4. Emirates Insurance Company
5. National General Insurance Company
6. Orient Insurance
7. Abu Dhabi National Takaful Company
8. Oman Insurance Company
9. Orient UNB Takaful Company

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