Because the Emirati authorities want to support employees, they established job loss insurance UAE in 2023. This system provides some protection to employees who lost their jobs under specific conditions. In this way, the employee has the opportunity to have financial relief while he can enter another job.
In this article, we will show you the highlights of this insurance, such as the application process. Additionally, we will show you the amount that employees can receive and during what period.
What is the job loss insurance UAE scheme?
Decree Law No. 13 of 2022 established theunemployment insurance UAE, known as ILOE. People can benefit from this scheme ifthey lost their job not due to disciplinary reasons or resignation. In this way, employees who meet the established conditions will receive a percentage of the salary they received in their previous job.
In this case, the salary taken into account is the average of the last 6 months before becoming unemployed. However, they will only receive the benefit during the 3 months following said situation. Additionally, to receive the benefit, the employee must have paid the monthly premium for at least 12 continuous months.
In this sense, there are certain difficulties in determining involuntary loss and receiving UAE insurance against job loss. For example, layoffs for certain reasons or layoffs may fall under the category of involuntary loss of employment. Likewise, other conditions may exist, although dismissal due to poor performance or employee misconduct nullifies the benefit.
Who is eligible to subscribe to the UAE job loss insurance scheme?
To receive the insurance for job loss UAE benefits, employees must meet certain conditions. For example, if insurance is provided by a bank, you may be required to have a loan or a credit card depending on the terms of the institution. However, in its basic aspect, there are eligibility criteria for an employee to aspire to receive the benefit:
- The applicant must possess a valid residence visa or proof of citizenship.
- You must provide proof that you have permanent, full-time employment in the UAE. This is because temporary or other types of workers other than permanent workers do not qualify for this insurance.
Likewise, workers exempt from unemployment insurance UAE include the following:
- Investors, that is, owners of companies in which they work.
- Domestic helpers.
- People under 18 years of age.
- Retirees who have the right to receive a pension and start working at a new job.
What are the compensation benefits for UAE job insurance against job loss?
The UAE insurance against job loss scheme establishes a series of regulations to obtain the benefit. Below, we will show you the compensation details that eligible employees receive for this purpose:
- The monthly compensation is 60% of the average basic salary during the last 6 months before the employee became unemployed.
- In category A, the maximum benefit that the employee can claim is AED 10,000 monthly.
- In category B, the maximum benefit that the employee can claim is AED 20000 monthly.
- Also, you can only receive the maximum compensation for 3 consecutive months.
- The total payment period for UAE job loss insurance may not exceed 12 monthly benefits.
What are the job loss insurance UAE plans?
As with any other insurance service, depending on the category the employee falls into, they must pay a monthly premium. On the job loss insurance UAE website, you will find that it is divided into 2 main categories. Next, you can see what benefits and insurance premiums the employee must pay:
Category A
- This includes workers with an average basic salary of AED 16,000 or less.
- The monthly premium is AED 5 + VAT.
- The compensation benefit is a maximum of AED 10000 monthly.
Category B
- This includes workers with an average basic salary of more than AED 16,000.
- The monthly premium is AED 10 + VAT.
- The compensation benefit is a maximum of AED 20000 monthly.
What are the subscription channels for the UAE unemployment insurance?
There are various service channels so you can apply for involuntary job loss insurance. Next, you can see what each of the aforementioned means are:
- Free services include the unemployment insurance UAE website (www.iloe.ae) and the ILOE app.
- Channels including charges are Al Ansari Exchange, kiosks, Tasheel, Tawjeeh, banking apps, and ATMs.
What is the best job loss insurance in UAE?
To opt for insurance for job loss UAE, no service is better than the other. However, if you have various options provided by the Dubai Insurance Company including:
- Emirates Insurance Company
- Abu Dhabi National Insurance Company
- National General Insurance Company
- Al Ain Ahlia Insurance Company
- Orient Insurance
- Oman Insurance Company
- Orient UNB Takaful Company
- Abu Dhabi National Takaful Company
How to subscribe to the job loss insurance UAE scheme?
The application process for enrollment in the ILOE scheme includes a series of easy-to-complete steps. You can do the entire procedure by following this step-by-step guide that we offer below:
- Visit the unmployemtn insurance UAE website or use the app.
- Then you will need to select SUBSCRIBE HERE.
- Next, select INDIVIDUAL and click on the job sector you belong to (federal government or private).
- You need to use your Emirates ID number to log in and you will get a one-time password (OTP) on your mobile phone.
- Once entered, you will be able to see your salary details and the premium you will have to pay.
- Then, you must check I CONFIRM MY PERSONAL DETAILS ARE CORRECT.
- In the next step, you will need to select the insurance coverage, which can be 1 or 2 years.
- The system allows you to select the premium payment period between full/annual, semi-annual, quarterly, or monthly.
- Accept the terms and conditions after reading them.
- Enter an email in which you will receive the insurance certificate.
- Then, enter your card details to pay.
- Finally, you will receive the UAE insurance against job loss certificate in the mail, which you can easily download.
What are the job loss insurance UAE payment options?
The authorities have established various methods for payment of insurance for job loss UAE for the convenience of employees. In this case, you can do it directly on the ILOE web portal or in the official application. Likewise, other payment methods for insurance are listed below:
- Exchange centers
- Tawjeeh and Tasheel Business Centers
- Inclusion in telecommunications service bills
- Payments by SMS
- Kiosks
- Authorized payment applications
Conclusion
Unemployment insurance UAE is an aid provided by the national government to help people who become unemployed. However, there are certain criteria to receive this benefit, such as the reason for losing employment. Therefore, if you would like more information about this and other insurance in the UAE, you can contact us.
Payroll – WPS