UAE: Can residents exempt from unemployment insurance join the scheme? – information

Employees whose visas are sponsored by their spouse or parents but who hold a work permit issued by MoHRE must join the scheme

UAE residents who are exempt from the Involuntary Unemployment (ILOE) scheme cannot subscribe to the scheme, even if they wish to.

According to the guidelines of the Ministry of Human Resources and Emiratisations (MoHRE), only employees (both nationals and expatriates) working in the private sector, federal government and free zones are required to subscribe to the scheme.

However, investors (people who own their workplace), domestic workers, temporary contractors, minors under the age of 18, and retirees who are receiving a pension and starting a new job are exempt from the scheme.

The exempt category also includes temporary contract workers with contracts of less than two years.

MoHRE last week extended the deadline to register for the mandatory unemployment insurance scheme from June 30 to October 1, 2023. Those who fail to register by October 1 face a Dh400 fine.

“Those who fall into the exempt category of the Involuntary Unemployment (ILoE) scheme cannot subscribe even if they wanted to. Because the scheme only covers private, federal and semi-government employees,” said Dana Kansou, manager of distribution and strategic partnerships at Dubai Insurance, which manages the ILoE insurance pool. explain.

The nominal subscription fee is Dh5 per month (Dh60 per year) for workers with a basic monthly salary of Dh16,000 or less and Dh10 per month (Dh120) for workers with a basic monthly salary of more than Dh16,000. However, workers are entitled to subscribe to additional insurance benefits.

Employees will receive cash compensation equal to 60% of their average base salary over the past six months within three months from the date of unemployment.

To receive compensation, insured persons must be enrolled in the plan for no less than 12 consecutive months and must file a claim for compensation within 30 days of leaving employment, provided their employment has not been terminated for disciplinary reasons, and they have not resigned, or claim for compensation is not fraudulent. Compensation payments will be suspended from the day the worker joins another job or leaves the country.

Meanwhile, employees whose visas are sponsored by their spouses or parents but who hold work permits issued by MoHRE are also required to join the scheme.