The Ministry of Human Resources and Emiratization (MoHRE) has added two additional classes, increasing the number of employee types that are eligible to enroll in the UAE’s job loss program.
Employees working for semi-government organizations and free zones can also sign up for the MoHRE’s new involuntary loss of employment (ILoE) program.
The Ministry mandated that employees in the federal government and the business sector purchase job loss insurance as of January 1, 2023.
Employees will be fined AED 400 if they don’t subscribe by June 30. Additionally, if premiums are not paid for more than three months after the due date, an AED 200 fine will be assessed.
Employees who earn a basic wage of less than AED16,000 are required to pay a premium of AED5 per month or AED60 per year plus VAT under the ILoE insurance program. For three consecutive months, they will get 60% of the average basic wage as job loss compensation. While under this program, employees with basic salaries over AED16,000 are obliged to pay AED10 per month or AED120 per year in premiums.
One or two years are available for the policy duration. The ILOE website, Al Ansari Exchange, ATMs, Dubai Insurance, and the ILOE website all accept subscription payments.
Since its debut in January 2023, there have been more over one million users, the Ministry announced in early April.
People working for semi-government organizations or businesses registered in a UAE free zone can subscribe by going to the “Non-Registered in MoHRE” link on the ILoE portal, according to a notice posted on the ILoE website.
The Minister of Human Resources and Emiratization, Dr. Abdulrahman Al Awar, urged companies to support their employees’ enrollment in the plan and to encourage those employees who are entitled to do so to do so.
