UAE Involuntary Loss of Employment Insurance (ILOE) Scheme: What You Need to Know!

The UAE Government has created a special plan called the Involuntary Loss of Employment (ILOE) Insurance Scheme. It helps employees who lose their jobs but not because they did something wrong or quit. This plan offers temporary money help until they find a new job. It's like a safety net, helping people keep going when they face tough times without making businesses pay extra money. This plan is part of the UAE's big goals to keep the economy growing.

When Does the ILOE Scheme Start?

The ILOE Scheme began on January 1, 2023, but don't worry if you're not signed up yet. The UAE Government is giving everyone a 9-month grace period, so you have until October 1, 2023, to get on board.

Is It Mandatory?

Yes, you have to join the ILOE Scheme. If you don't, you'll have to pay a fine.

Can Companies Help Employees Sign Up?

If your company is not already registered with the Ministry of Human Resources and Emiratization (MoHRE), they can still sign you up. They need to send an email to companyreg@iloe.ae with their trade license and a request letter.

What If You Don't Join or Pay?

If you don't join the scheme by October 1 or if you join but don't pay for more than three months, there are fines. You have to pay these fines. If you don't, the government will take the money from your wages, your end-of-service gratuity, or another acceptable way, as decided by MoHRE.

Who Doesn't Have to Join?

Some people don't have to join the ILOE Scheme. These are:

• Business owners (like investors)
• People who work as domestic helpers
• Temporary workers with contracts
• Young people under 18
• Retirees who get a pension and start a new job

How Much Does It Cost?

The cost depends on how much you earn:

If you make 16,000 AED or less each month, you pay 5 AED each month (or 60 AED each year). You can't get more than 10,000 AED each month from this plan.

If you make more than 16,000 AED each month, you pay 10 AED each month (or 120 AED each year). You can't get more than 20,000 AED each month from this plan.

You can choose to pay every month, every three months, every six months, or once a year.

Compensation calculation

The compensation structure is designed for the financial well-being of the employee. The compensation rate is 60% of your average basic salary over the six months preceding unemployment. This compensation is disbursed for a maximum of three months for each claim, starting from the date of unemployment.

Claiming compensation

Claiming compensation is a straightforward process. To be eligible, you must have been a subscriber to the Unemployment Insurance Scheme for a continuous period of at least 12 months. The claim can be initiated within 30 days of job loss and normally undergoes processing within two weeks of submission.

Note that if you decide to cancel your residency or depart the country, or if you secure a new job within the processing period, your right to compensation will be forfeited.

Non-Eligibility

It is also important to note that you cannot claim the insurance in the following cases:

• Dismissed for a disciplinary reason.
• If you have resigned from their job.
• If you have left the UAE
• If you have joined a new job.

Where to Sign Up?

You can sign up on the ILOE Insurance Pool's website. There are also other ways to join, like using their app, going to kiosks, business service centers, money exchange places like Al Ansari, and bank apps. You can even do it through SMS or your telecom bill.

How to Sign Up for Free?

Signing up is free on the ILOE website and app. You just need to follow these steps:

1. Go to the ILOE website.

2. Click "subscribe here" to start.

3. Pick your job sector.

4. Fill in your personal info and phone number (you'll get a code via SMS).

5. Choose how often you want to pay (monthly, quarterly, semi-annually, or annually).

6. Enter your email.

7. Go to the payment page and finish signing up.

Remember, signing up for the ILOE plan won't cost you anything when you use their website or app. Both of these are run by Dubai Insurance.