ABU DHABI, 29 December – The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced that subscription to the Unemployment Insurance Scheme will start on January 1, calling on UAE nationals and residents who work in the federal government and private sector to subscribe.
The Insurance Pool, which is represented by Dubai Insurance, is responsible for providing the insurance service. The pool offers seven subscription channels: the website www.iloe.ae, the smart app “iloe”, Kiosk machines, businessmen service centres, Al Ansari Exchange, bank ATMs and applications, as well as telecommunication bills, said a Wam news agency report.
Stemmed from the Federal Decree-Law No. 13 of 2022, the Unemployment Insurance Scheme aims to create a low-cost job safety net that supports employees in their professional journey, providing them with career stability with no cost on employers.
Anyone who loses their job as a result of termination of services (except for disciplinary reasons or resignation) is entitled to a maximum three-month cash compensation.
The subscription fee depends on the employee’s basic salary. The first category is those with a basic salary of AED16,000 or less and their subscription fee is AED5 per month (AED60 annually), whereas, the second category is those with a basic salary exceeding AED16,000 and their subscription fee is AED10 per month (AED120 annually).
The first category is eligible for a monthly cash compensation reaching up to AED10,000, while the maximum monthly cash compensation for the second category is AED20,000.
The insurance fees can be paid monthly, quarterly, once every six months, or annually. The insurance compensation is calculated at a rate of 60 percent of the employee’s basic salary in the last six months prior to his or her unemployment.
The compensation should be paid within two weeks from the date the claim is submitted. The insured can submit the claim through various claim channels.
The insured must be subscribed for at least 12 consecutive months to be eligible for a cash compensation. However, they would lose the right to claim the compensation should they leave the country or take up a new job, said the report.
Investors – owners of establishments in which they work, domestic workers, temporary contract workers, juveniles under 18 years, and retirees who receive a pension and joined a new job are not eligible to subscribe to the insurance scheme, it added. — TradeArabia