Countdown to UAE Unemployment Insurance scheme: June 30 deadline nears

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If you are employed in the private or public sector in the UAE, you now have 30 days remaining to register for the government-mandated Unemployment Insurance scheme. The grace period to register runs out on June 30.

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. According to the Ministry of Human Resources and Emiritisation (MoHRE), more than two million people had registered for the scheme as of May 18, 2023.

The number of subscribers to the Unemployment Insurance Scheme has exceeded two million since its launch in January 2023. ?? pic.twitter.com/9Gw2UlQGJ5

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) May 18, 2023

Objectives of the unemployment insurance scheme

The insurance scheme aims to:
• Provide the insured parties with income for a limited period of time during his/her unemployment
• Enhance the competitiveness of Emiratis in the labour market
• Provide social protection to ensure continued decent living for the unemployed
• Achieve a competitive knowledge economy by attracting and retaining the best international talent

Deadline

All employees in the UAE must enroll with the Unemployment Insurance scheme. The deadline has been split into two periods depending on the date of employment. The majority of employees will need to register by the end of June 2023.
• If the employment contract was signed before February 28, 2023, the deadline for registration is June 30, 2023
• Employees who began their employment after February 28, 2023 must register within four months of the start date of employment

Who can register?

The terms and conditions of the new law apply to all employees in the federal government and the private sector working in the UAE.

Who cannot register?

The unemployment insurance scheme is an employee requirement only. Employers are not required to register their employees in an insurance scheme, nor are employers required to pay any contributions to the scheme.

The scheme applies to all workers in the private and federal sector except:
1. Investors, business owners who own and manage their businesses themselves
2. Domestic workers
3. Employees on a temporary basis
4. Juveniles under the age of 18
5. Retirees who receive a pension and have joined a new employer

What happens if an employee fails to register?

Failure by an employee to register by the applicable deadline will lead to fines being imposed. An upfront fine of Dhs400 will be imposed on the employee. After registering for the scheme, if an employee fails to pay the insurance premiums in accordance with the payment periods for more than three months, the insurance certificate will be cancelled and a fine of Dhs200 will be imposed.

Where to register?

1. Insurance pool’s website can be accessed at www.iloe.ae and its smart mobile application 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

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