September 22, 2023
The Unemployment Insurance scheme is a type of insurance and social security program designed to offer financial assistance to both Emiratis and residents employed in the federal and private sectors. In the event they lose their jobs due to termination by their employers. Workers must pay a monthly insurance premium during their employment in exchange for this financial support.
The worker has the flexibility to opt for premium payment frequencies on a monthly, quarterly, semi-annual, or annual basis. Insured workers can opt for additional benefits in partnership with the insurance company, beyond the basic package mentioned earlier. Please note that the value of the insurance policy is subject to Value Added Tax (VAT).
Workers can enroll in the scheme through the ILOE Insurance Pool website and its app, or any other channels officially introduced by the Ministry of Human Resources and Emiratization (MoHRE). Federal government and private sector employees must complete their subscription to the scheme before September 30, 2023.
The worker must submit the claim within 30 days from the date of their unemployment. The insurance company must process and transfer the compensation within two weeks of receiving the claim.
Insurance providers must adhere to the insurance policy terms and Central Bank of the UAE regulations when handling claims.
Compensation lasts up to 3 months or until new employment, whichever comes first.
The Ministry of Human Resources and Emiratisation (MoHRE) will report any insurance company violations of the policy terms and conditions.
The Federal Authority for Government Human Resources, in collaboration with the Ministry of Finance, will implement the ‘Unemployment Insurance Scheme’ for federal government employees.
Situations leading to Ineligibility for compensation:
Starting on October 1, 2023, the UAE Government will impose penalties on individuals who do not enroll in or adhere to the payment requirements of the Unemployment Insurance scheme. This deadline aligns with Ministerial Resolution No. 340 of 2023, which modifies the timeline for imposing fines related to the Unemployment Insurance System, as specified in Ministerial Resolution No. 604 of 2022 on the Unemployment Insurance System.