United Arab Emirates (UAE) has extended the registration deadline for the unemployment insurance scheme from 1 July to 1 October 2023.
According to the Ministry of Human Resources and Emiratisation (MoHRE), fines will only be imposed on those not registering for the Involuntary Loss of Employment (ILOE) insurance scheme after the new deadline.
The ministry also revealed that over 4.6 million people have registered for the insurance scheme. Those who do not sign up before the new deadline will be fined AED 400 ($108).
It is pertinent to mention here that the insurance only covers male employees from the federal and private sectors, including Emiratis and expats.
Employers, who own the company, are exempt from this scheme, along with domestic staff, temporary contract workers, retirees, and individuals under 18 years old.
The subscription fee of the ILOE insurance scheme is AED 5 per month for those with a basic monthly salary of AED 16,000 or less and AED 10 per month for those making over AED 16,000. In addition, workers can also register for other insurance schemes.
Unregistered employees can sign up via ILOE’s official website. In order to be eligible for compensation, a person must have registered with the scheme and paid the monthly fee for at least 12 consecutive months.
They must also file an application for compensation within 30 days of being unemployed given that they have not been fired due to disciplinary reasons, they have not resigned, or the compensation request is not found to be fake.
Also, compensation payment stops after the person gets employed or leaves UAE.
