Page 103 - AAE PR REPORT - August 2024
P. 103
ILOE: How to renew your UAE unemployment
scheme to avoid fines
Written by:
Tamara Wright
3 days ago
Is it time to renew your ILOE insurance subscription?
The UAE’s mandatory Involuntary Loss of Employment (ILOE) Scheme came into effect in January
2023 for all Emirati and foreign workers in the private and public sectors, including those working in
a freezone.
The ILOE is a form of social security that will provide workers with up to three months of
compensation if they lose their jobs. Employees who fail to sign up or renew their unemployment
insurance scheme will face a fine of Dhs400.
Employees can choose to pay the premium on a monthly, quarterly, half-yearly, or annual basis. Do
note that in order to claim the benefits, employees must pay the monthly premium for at least 12
consecutive months.
How do I renew my insurance?
If you chose to pay the ILOE annually, you may have already received a text message (from “DIN”)
asking you to renew your policy.
Thankfully, there are three easy ways to renew the policy: online via the official government
website; at your nearest Al Ansari Exchange branch; or at a government business centre (Tawjeeh
or Tasheel).
Make sure you have your Emirates ID number and UAE mobile number handy.
How much does the UAE Unemployment Insurance scheme cost?
Category A: Workers with a basic salary of Dhs16,000 or less will need to pay a monthly insurance
premium of Dhs5, i.e. Dhs60 annually.
Category B: Those with a basic salary exceeding Dhs16,000 will need to pay Dhs10 per month, i.e.
Dhs120 annually.
How much compensation will I get?
Compensation will be calculated based on the individual’s salary. It will be paid for no more than
three months from the date of unemployment.
The compensation is calculated at up to 60 per cent of the employee’s salary. For example:
Category A: Maximum claim benefits Dhs10,000 per month.
Category B: Maximum claim benefits Dhs20,000 per month.
https://whatson.ae/2024/08/iloe-how-to-renew-your-uae-unemployment-scheme-to-avoid-fines/
