The Ministry of Human Resources and Emiratisation (MoHRE) in the UAE has increased the categories of employee classifications eligible for the job loss scheme. The scheme will now cover semi-government employees along with the ones who are working in free zones.
According to the ILoE insurance scheme, employees with a basic salary lower than Dh16,000 are obligated to pay Dh5 per month or Dh60 per year plus VAT as a premium. They will receive compensation of 60 per cent of the average basic salary for up to three consecutive months in case of job loss.
Additionally, employees with a basic salary exceeding Dh16,000 are required to pay Dh10 per month or Dh120 per year as premium.
Moreover, the ministry has also mentioned the subscription time period for the policy. The policy period for the ILoE insurance scheme is either one or two years, and individuals can subscribe to it through various channels such as the ILOE website, Dubai Insurance, ATMs, and Al Ansari Exchange.
From the beginning of 2023, the Ministry enforced a compulsory subscription to job loss insurance for workers employed in the private sector and federal government. Additionally, it also states that if employees fail to subscribe to the ILoE insurance scheme by June 30, they will be charged a penalty of Dh400. Additionally, a fine of Dh200 will be imposed if they do not pay their premiums for more than three months from the due date.
The Ministry announced in early April that the number of subscribers to the ILoE insurance scheme had surpassed one million since its launch in January 2023.
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