MoHRE has called on all employees to register for the mandatory unemployment insurance scheme, to avoid penalties

Eligible employees who fail to register for the mandatory unemployment insurance programme by the deadline of October 1 will be subject to a fine of Dh400. To avoid fines, the Ministry of Human Resources and Emiratization (MoHRE) has urged all employees to sign up for the programme.

Almost 5 million individuals have already signed up for the low-cost job security net, which provides short-term financial assistance. Employees are eligible to collect the compensation, as long as they have paid into the plan for at least 12 consecutive months. In the case that the insured terminates residency, leaves the country, or accepts new employment, the claim to compensation is lost. After submission, the insurance claim will be handled in two weeks.

The government stated that although companies are free to register their employees in the system, it is the employees' obligation to do so. Both citizens and residents who work in the private and public sectors are included in the programme. Investors, domestic workers, temporary workers, children under the age of 18, and retirees who get a pension and have joined a new company are examples of exceptions. Investors are business entrepreneurs who own and operate their own companies.

The Involuntary Loss of Employment (ILOE) insurance pool website, the ILOE app, kiosks, business service centres, exchange firms (like Al Ansari), and bank applications are all places where subscriptions can be made.

Two categories make up the insurance programme. The first covers people whose base pay is Dh16,000 or less, with a monthly insurance fee of Dh5. The utmost monthly salary is fixed at Dh10,000. Those who earn a basic income of more than Dh16,000 fall into the second group. In this instance, the monthly insurance premium is Dh10. The maximum monthly salary for this group is Dh20,000. 

The insurance certificate will be invalidated and a fine of Dh200 levied if an employee enrols in the plan but fails to pay the payments for more than three months after the due date. The maximum period of payment for each claim is three months, and the compensation is computed at a rate of 60% of the average basic wage in the six months prior to unemployment. The individual in question cannot have quit or been fired due to disciplinary issues.