UAE authorities have extended the time given to employees to sign up to the national Unemployment Insurance Scheme.
The deadline was previously the end of June with fines being issued from July 1.
Fines will now be issued only to people not registered for the service from October 1, a circular from the Ministry of Human Resources and Emiratisation has said.
The ministry said more than 4.6 million subscribers have registered in the scheme so far.
The Ministry has extended the deadline for fines on non-subscribers to the Unemployment Insurance System. Now, you have until 1 October, 2023, instead of 1 July, to register and avoid a AED400 fine.
Benefit from the benefits available to UAE nationals and residents eligible for…
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) June 15, 2023
“The remarkable success that the Unemployment Insurance Scheme has achieved since it went into effect in January 2023 reflects the notable awareness among beneficiaries and members of the community as a whole about the advantages in terms of providing a social safety net, as well as enhancing quality of life for workers across the labour market,” said the statement.
Fines for failing to sign up before the updated deadline are set at Dh400.
The scheme covers workers from the federal and private sectors, including UAE citizens and residents.
The nominal subscription fee does not exceed Dh5 per month for workers earning basic monthly salaries of Dh16,000 or less, nor Dh10 per month for workers earning more than Dh16,000.
Workers also have the right to subscribe to additional insurance benefits.
The ministry called on employees who have not yet registered in the scheme to do so before the new deadline so as to not incur fines.
Subscription can be completed through the website www.iloe.ae.
To be eligible for compensation in the case of job loss, the insured person must have been registered in the scheme for a period of no less than 12 consecutive months.
They must also submit an application requesting compensation within a period of 30 days from leaving work, provided their employment was not terminated for disciplinary reasons, they have not resigned, or the compensation request was not found to be fraudulent.
Compensations payments are then suspended from the date the worker begins a new job or leaves the country.
What is unemployment insurance scheme?
The insurance scheme was rolled out in the country in January this year and is mandatory for all employees including those in the free-zone and semi-government entities.
The scheme aims to provide those employed in the UAE, with income for a limited period of time during his/her unemployment. The objective of the scheme is to provide social protection to ensure continued decent living for the unemployed while enhancing the competitiveness of Emiratis in the labour market.
Where to register?
In order to facilitate registrations, MOHRE has set up multiple channels as points of access.
1. Insurance pool’s website can be accessed at www.iloe.ae and its smart mobile application is available for both Android and Apple users
2. Bank ATMs and kiosk machines
3. Business service centres
4. Money exchange company outlets such as Al Ansari and Lulu Exchange
5. du and Etisalat channels (to be rolled out soon)
6. Via SMS
To be eligible for compensation in the case of job loss, the insured person must have been registered in the scheme for a period of no less than 12 consecutive months.
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