Failure to subscribe by June 30 will result in a penalty of Dh400 for employees.
The number of categories of employees who can subscribe to the UAE’s job loss scheme has been expanded, with the addition of two new classes by the Ministry of Human Resources and Emiratisation (MoHRE).
Employees working in free zones and semi-government entities can also register for the involuntary loss of employment (ILoE) scheme introduced by the MoHRE.
Starting January 1, 2023, the Ministry made it mandatory for employees working in the private sector and federal government to subscribe to job loss insurance.
Failure to subscribe by June 30 will result in a penalty of Dh400 to employees. Also, a Dh200 fine will be imposed for failing to pay premiums for more than three months from the due date.
Under the ILoE insurance scheme, employees with a basic salary of less than Dh16,000 are required to pay Dh5 per month or Dh60 per annum plus VAT as a premium. They will be compensated with 60 percent of the average basic salary for the job loss for three consecutive months. While employees with a basic salary of over Dh16,000 are required to pay Dh10 a month or Dh120 annual premium under this scheme.
The policy period is available for one or two years. Subscriptions can be made from Dubai Insurance, the ILOE website, Al Ansari Exchange, and ATMs.
The number of subscribers exceeded one million since its launch in January 2023, the Ministry said in early April.
A notice posted on the ILoE website showed that people working in semi-government entities or companies registered in a UAE free zone subscribe by proceeding to the “Non-Registered in MoHRE” link on the ILoE portal.
Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, called on employees that are eligible to subscribe to the scheme to benefit from coverage, and on employers to encourage their employees to subscribe.
News Source: Khaleej Times