What is “The Unemployment Insurance Scheme (ILOE)”?
How many types of Plans are there?
The unemployment insurance scheme is divided into 2 categories depending on the worker’s salary.
Category I – Employees with 16,000 AED basic salary or less.
Employees with less than 16,000 AED basic salary or less will be required to pay monthly 5 AED, that is annually 60 AED. The employees can choose to pay on a monthly, quarterly, semi-annually, or on annual basis.
Category II – Employees with more than 16,000 AED basic salary.
Employees with more than 16,000 AED basic salary will be required to pay monthly 10 AED, that is annually 120 AED. The employees can choose to pay on a monthly, quarterly, semi-annually, or on annual basis.
*The values of the insurance policy are subject to VAT
What are Benefits of the Scheme?
- The monthly compensation is 60% of the average basic salary.
- For Category I, maximum claim amount is up to 10,000 AED per month.
- For Category II, maximum claim amount is up to 20,000 AED per month.
- Maximum compensation for any one claim is 3 consecutive months.
How/ Where to pay the scheme amount?
- You can use either Official website or Smart application.
- Bank ATMs and Kiosk machines
- Business service centres.
- Money exchange companies
- du and Etisalat
What are the Documents needed?
- Emirates ID or Unified number
- Valid UAE Mobile Number
When is the Last Date for Apply ?
The employees have six months until June 30, 2023 to apply for this Insurance. Employees who change their visa or start work in UAE after January 1, 2023, will have a grace period of four months starting from their date of entry into the UAE on an employment entry permit or from an in-country immigration status change.
How much is the Fine for Missing payment and Non-subscription?
If any employee has registered but failed to pay their contributions for three consecutive months, they will lose the benefits and they required to pay a fine of 200 AED.
The employees who fail to subscribe to this insurance scheme within June 30, 2023, will be subject to a fine of AED 400.
How to Eligible for this Scheme?
- To be eligible for this scheme, the employees must have to pay for at least 12 consecutive months.
- The employees must submit the application within 30 days from the date of unemployment.
- The employees must have to physically attend in UAE. If they exit UAE, they will no longer available for the scheme.
- The reasons of job loss due to other than disciplinary action or resignation.
- The insured is not entitled to compensation if his claim involves fraud or deceit.
Who is not Eligible for this Scheme?
- Investors, business owners who own and manage their business themselves.
- Domestic Employees.
- Employees working on a temporary basis.
- Juveniles under the age of 18.
- Retirees who receive pension and have joined a new employer.