The Ministry of Human Resources and Emiratisation (MoHRE) has announced a three-month extension for the deadline of the Involuntary Loss of Employment (ILoE) insurance scheme in the UAE. UAE nationals and residents now have until October 1, 2023, to sign up for the scheme and avoid fines.
Since its introduction in January, an impressive 4.6 million employees have already subscribed to the ILoE scheme. The extension comes as a relief, particularly for blue-collar workers, as it grants them additional time to enroll in the insurance program.
Previously, individuals who failed to register for the ILoE scheme before June 30 would have faced fines of Dhs400. However, the recent extension aims to provide an opportunity for more individuals to take advantage of the insurance coverage and protect themselves against involuntary loss of employment.
The ILoE insurance scheme, which became mandatory for all private and federal government sector employees in January 2023, also includes workers in free zone companies and semi-government entities.
UAE employees that fail to subscribe to the UAE unemployment insurance by the extended date of October 1 will be required to pay a fine of Dhs400 imposed by the Ministry, and a fine of Dhs200 in case the insured fails to pay the prescribed insurance premiums for more than three months.
Under the ILoE insurance scheme, employees with a basic salary below AED 16,000 are required to pay a premium of AED 5 per month or AED 60 per annum, plus VAT. Those with a basic salary exceeding AED 16,000 must pay AED 10 per month or AED 120 per annum, plus VAT. The policy period is available for either one or two years, providing employees with flexibility based on their individual needs.
To subscribe to the ILoE scheme, individuals are instructed to follow these steps:
For further information or assistance, individuals are encouraged to visit www.iloe.ae or contact 600599555.
With the deadline extension, the UAE government aims to ensure widespread participation in the ILoE insurance scheme, providing valuable protection and financial support for employees facing involuntary job loss. By subscribing to this scheme, individuals can secure peace of mind and mitigate the potential financial burden that may arise during unforeseen employment challenges.