Unemployment Insurance Scheme mandatory in the UAE

Date Posted:Wed, 4th Jan 2023

Unemployment Insurance Scheme mandatory in the UAE

Employees will be responsible for obtaining their own insurance plan, failure to register will result in fines from MOHRE of up to AED 400 for non-registration and AED 200 for every three-month period a premium is not paid which will be deducted through WPS, end-of-service gratuity, or any other alternative method deemed acceptable by the Ministry. Any pending fines will also stop employers from being able to apply or renew an employee’s work permits.

 

Employees will be divided into two main categories for subscriptions and compensation; 

  1. Category 1: Basic salary up to AED16,000, the subscription premium will cost AED 5 per month (AED 60/annum). The monthly compensation will not exceed AED10,000.
  2. Category 2: Basic salary AED16,000 or more, the subscription premium will cost AED 10 per month (AED 120/annum). The monthly compensation will not exceed AED20,000.

Premium may be paid monthly, quarterly, bi-yearly, or yearly through the approved subscription channels determined by Ministry. 

Subscription Channels:

  • An employee can subscribe through the insurance pool's www.iloe.ae
  • Smart applications, bank ATMs and kiosk machines
  • Business service centres,
  • Money exchange companies
  • Du, Etisalat and SMS.

We recommend subscribing as early as possible in January to avoid any fines.

Contact PRO Partner Group for assistance with registering employees for the Unemployment Insurance Scheme. PPG can also assist with any other related employment law, HR, PRO and company formation services.