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.
