Around 60,000 people have registered for the Involuntary Loss of Employment (ILOE) insurance plan in United Arab Emirates (UAE) ever since it came into effect on 1 January 2023.
In accordance with the UAE government’s orders, private and public sector employees are required to register for the scheme, while domestic workers, contract employees, minors (under the age of 18), and pensioners, working somewhere, are exempt from it.
The number of subscribers in the Unemployment Insurance Scheme has reached 60,000 within two days.
The Scheme that entered into force on January 1st, 2023 is an implementation of the Federal-Decree No 13. of 2022 regarding Unemployment Insurance that aims to provide temporary pic.twitter.com/eE8a6oz2Nn
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 3, 2023
Speaking about the new subscribers, UAE’s Ministry of Human Resources and Emiratization (MoHRE) stated that 86% of 60,000 people registered through the ILOE website, and 90% applied for the annual payment plan rather than the monthly one.
ILOE insurance plan, a social security initiative, was launched this year under which laid-off workers in UAE will be granted up to three months of compensation.
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.