Involuntary Loss of Employment (ILOE) Insurance Registration
The Ministry of Human Resources and Emiratization (MOHRE) has advised eligible citizens and residents eligible for the Unemployment Insurance scheme to register themselves with the Involuntary Loss of Employment (ILOE) Insurance agency on or before the 1st of October 2023 to avoid fine.
Subscription can be completed by visiting the Involuntary Loss of Employment (ILOE) agency’s website www.iloe.ae , the ILOE smartphone application, Kiosks – Upay and MBME Pay, Business service centres – Tawjeeh and Tasheel, Al Ansari Exchange, and at some of the Banks (through App) and ATM Machine of C3 Pay. The full list is available on the ILOE Portal.
For ready reference, please find below some important points of the scheme (source : ILOE portal and News Article from Emirates 24/7)
Enrolment in the scheme with the agency is the responsibility of the employee and not the employer.
The Scheme applies to all workers in the private and federal sectors – both citizens and residents – excluding investors (business owners), domestic workers, temporary contract workers, Juveniles under the age of 18, and retirees who are entitled to a pension and have joined a new job.
The insurance scheme is divided into two categories:
- Category A : covering those with a basic salary of AED 16,000 per month or below. The insurance premium for the insured employee in this category is set at AED 5 per month (AED 60 annually). The maximum monthly compensation is set at AED 10,000.
- Category B : includes those with a basic salary exceeding AED 16,000 per month. The insurance premium is AED 10 per month (AED 120 annually). The monthly compensation for this category is capped at AED 20,000.
The insurance compensation can be claimed as long as the insurer (employee) has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The insured’s right to compensation is forfeited in the event that he/she cancels their residency and leaves the country or joins a new job, within the processing period.
The compensation is calculated at the rate of 60% of the average basic salary in the last six months before unemployment and paid for a maximum of three months for each claim from the date of unemployment, provided the employee in question was not terminated for disciplinary reasons, and has not voluntarily resigned.
The system is aimed to strengthen job market by providing social protection for workers. It provides a safety net for employees and their families in case of a sudden loss of job, until they find an alternative employment opportunity or plan their future course of action.
No doubt, introduction of this scheme is yet another progressive step towards making UAE a hub of world-class talent and a ‘happy’ place to work and live.