United Arab Emirates (UAE) has announced to penalize all employees, including locals and expats, who do not register with the unemployment insurance plan called Involuntary Loss of Employment (ILOE), which came into effect on 1 January 2023.
As reported by Khaleej Times, employees must register before 30 June 2022 and if they fail to comply, they will be fined AED 400.
According to the details, employees in both private and public sector firms are required to register for the plan, while domestic workers, contract employees, minors (under the age of 18), and pensioners, working somewhere, are exempt from the plan.
Workers whose basic salary is less than AED 16,000 must pay a monthly AED 5 or yearly AED 60, including value-added tax (VAT). If they are laid off, they will be paid 60% of their basic salary for the next three months. Meanwhile, employees with a salary over AED 16,000, must pay a monthly AED 10 or yearly AED 120.
Also, insurance has to be subscribed for 12 consecutive months to qualify for cash benefits in the event of job loss.
Not applicable for freezone employees
السلام علیکم ورحمتہ اللہ
Sir,
This is very good step took uae govt, this should be happen many year before but come late better than nothing.
According to my advice govt should deduct a little money from all employees salary according to their salary limits.
If someone labourer get salary dh/1500, govt should deduct only dh/10 per/month from this labourer employer.
Same as at 2000 salary deduct dh/20 per month. On dh/2500 deduct 30, on 3000 deduct dh/40 per month.
Same like dh10 increase every on dh/500.
UAE govt collect milion dirhams fund every month.
Im not economic expert , im only driver, and i hope govt ll manage easly unemployment compensation in all uae.
With best regard,
Muhammad Riaz