Enroll Now in the UAE Involuntary Loss of Employment Scheme and Avoid Fines
Welcome to our comprehensive guide on the Involuntary Loss of Employment (ILOE) Scheme in the United Arab Emirates (UAE). In this article, we will provide you with all the essential details about the scheme, including its benefits, enrollment process, costs, and compensation. Don’t miss out on this opportunity to secure your financial well-being in the event of job loss. Enroll now to avoid fines and ensure peace of mind. Let’s dive in!
What is the Involuntary Loss of Employment Scheme?
The Involuntary Loss of Employment (ILOE) Scheme is a vital social security program introduced in the UAE to safeguard the financial stability of workers who face job loss. Under this scheme, eligible employees receive compensation for up to three months if they become unemployed. Whether you’re an Emirati citizen or a foreign worker employed in the private, public, or free zone sectors, the ILOE Scheme has got you covered.
Deadline for Enrollment
Enrollment for the ILOE Scheme is open until June 30, 2023. To ensure you don’t miss out on the benefits and to avoid fines, it is crucial to complete your enrollment before the deadline. Act now and secure your financial protection!
Consequences of Non-Enrollment
Failure to enroll within the grace period can lead to undesirable consequences. As per the Cabinet Resolution No. 97 of 2022, UAE employees who fail to subscribe to the insurance within the given timeframe will be subject to a fine of Dhs400 imposed by the Ministry. Additionally, a fine of Dhs200 will be imposed if the insured fails to pay the prescribed insurance premiums for more than three months. Avoid these penalties by enrolling now.
Understanding the Cost
The cost of the Unemployment Insurance scheme varies based on your salary category. Let’s explore the details:
Category A: Basic Salary of Dhs16,000 or less
Workers falling under this category need to pay a monthly insurance premium of Dhs5, equivalent to Dhs60 annually. This affordable premium ensures you have access to the scheme’s benefits and financial security.
Category B: Basic Salary exceeding Dhs16,000
If your basic salary exceeds Dhs16,000, the monthly insurance premium increases to Dhs10, totaling Dhs120 annually. Although the premium is slightly higher, the benefits and peace of mind it offers make it a worthwhile investment.
Remember, in order to claim the benefits, employees must consistently pay the monthly premium for at least 12 consecutive months.
The compensation provided under the ILOE Scheme is based on the individual’s salary and lasts for a maximum of three months from the date of unemployment. Let’s take a closer look at the compensation calculations:
Category A: Maximum claim benefits of Dhs10,000 per month
Employees falling under Category A can receive compensation of up to Dhs10,000 per month, providing crucial financial support during the challenging period of job loss.
Category B: Maximum claim benefits of Dhs20,000 per month
For those belonging to Category B, the maximum claim benefits increase to Dhs20,000 per month, ensuring higher financial stability and security in times of unemployment.
How to Apply for the ILOE Scheme
Applying for the ILOE Scheme is a simple and straightforward process. Here are the seven channels through which you can subscribe:
- Dubai Insurance website portal: Visit the official website of Dubai Insurance and follow the enrollment instructions provided.
- Al Ansari Exchange: Visit your nearest Al Ansari Exchange branch to complete the enrollment process.