UAE Unemployment Insurance scheme: Know the policy claim companies

Image credit: MoHRE

The UAE government’s mandated “Unemployment Insurance Scheme” is nearing its deadline for enrolment. The Ministry of Human Resources and Emiratisation (MoHRE) first announced the scheme in May 2022 and opened it for enrollment starting January 1, 2023.

The UAE government has set a deadline of June 30, 2023, for enrolling in the scheme.

The policy is designed to provide a safety net for the private sector and federal government employees working in the country. The scheme compliments the recent changes to immigration rules which allow foreign workers to remain in the UAE for up to six months after visa cancellation. The insurance scheme coupled with the grace period aims to make it easier for unemployed expats to remain in the country to seek new work.

MoHRE has published a video tutorial on its social media platforms encouraging workers to sign up for the scheme.

Subscribe to the Unemployment Insurance Scheme through simple steps. Watch the video to learn more ?? #UAE #MoHRE pic.twitter.com/7Ws3tRHB7M

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) May 15, 2023

How to subscribe

The scheme can be subscribed through the ILOE Insurance Pool website and its app. MoHRE has also set up other channels such as money exchange outlets and bank ATMs as venues to register.

Employee insurance scheme contribution

The Unemployment Insurance scheme, in return for a monthly premium, provides insured workers monthly compensation in the event of unemployment.

• Workers with a basic salary of Dhs16,000 or less must pay a monthly insurance premium of Dhs5, or Dhs60 annually plus VAT. The compensation has an upper limit for this category at Dhs10,000 per month.
• Those with a basic salary exceeding Dhs16,000 must pay Dhs10 per month, or Dhs120 annually plus VAT. The compensation has an upper limit for this category at Dhs20,000 per month.

Insurance Companies

The UAE government has signed an agreement with nine local insurance companies to operate and fund the scheme. Dubai Insurance Company is the representative of the insurance pool.

1. Abu Dhabi National Insurance Company
2. Al AinAhlia Insurance Company
3. Abu Dhabi National Takaful Company
4. Dubai Insurance Company
5. Emirates Insurance Company
6. National General Insurance Company
7. Oman Insurance Company
8. Orient Insurance
9. Orient UNB Takaful Company

Filing for a compensation claim

The worker must submit the claim within 30 days from the date of his/her unemployment. The insurance company has two weeks, from receiving the claim, to transfer the compensation to the insured’s account.

The insurance providers must process the insurance claims in accordance with the terms and conditions of the insurance policy and the applicable legislation of the Central Bank of the UAE.

Compensation will be paid from the date he/she loses the job and will be paid for 3 months or until he/she finds a job, whichever is earlier.

Conditions apply

To benefit from this entitlement, a worker must have been subscribed to the insurance scheme for at least one year (12 months) and must not have been dismissed on disciplinary grounds from his place of work. A worker is also subject to a cap of 12 months of compensation in total.

The Unemployment Insurance Law contains a provision allowing an insured employee to agree on additional benefits with the relevant insurance companies.

Entitlement to compensation ceases if an employee leaves the country or finds a new job during that time.

MoHRE will report any breach to the terms and conditions of the insurance policy by the insurance companies.

With respect to the employees of the federal government, the Federal Authority for Government Human Resources will implement the mechanism of the ‘Unemployment Insurance Scheme’ in coordination with the Ministry of Finance.