UAE residents first to subscribe to the mandatory insurance against job loss gets reminders to renew their policies

Reminders to renew insurance plans have begun to be sent to UAE citizens who were among the first to sign up for the required job loss insurance at the start of 2023.

“Your ILOE (Involuntary Loss of Employment Insurance) policy is due for renewal on January 2, 2024. Please login to your account … to update your details and renew your policy before expiration,” reads a text message sent to this reporter, who had subscribed to the scheme on January 1, 2023 — the first day when it became available.

Users of the Ministry of Human Resources and Emiratization's (MoHRE) digital platforms can renew, by selecting the "Subscribe/Renew Here" option.

The reminders for renewal coincide with the MoHRE's announcement on Wednesday that 14% of eligible employees still haven't signed up for the mandated programme. However, early customers are now covered financially if they lose their jobs. Even though millions of citizens have registered for the programme, they are only eligible to receive compensation for losing their jobs if they have done so for at least 12 months in a row. This implies that anyone who registered in January 2023 is now qualified to receive compensation.

If they relocate or take a new employment, they are not eligible for reimbursement.

Over 6.7 million UAE citizens have signed up for the programme since it began, according to the MoHRE. Enrollment was closed on October 1. Workers who chose not to register were fined Dh400.

If a subscriber doesn't pay their premiums for more than three months, they will be fined Dh200. Workers whose work permits were granted after October 1, 2023, will be required to enrol in the programme within four months, or else they will be fined Dh400.

Workers who do not pay their penalties within three months of the deadline will have the amount taken out of their end-of-service gratuity or earnings. Until the fines are paid, no new work permits will be granted.

It is mandatory for Emiratis and expatriates employed in both the public and private sectors to become members of the programme. Investors, domestic servants, temporary contract workers, minors, and pension-eligible retirees are among the exempted groups.

Two categories comprise the ultra-low-cost scheme:

The first pays an insurance premium of Dh5 per month (Dh60 yearly) for those whose basic wage is Dh16,000 or less. Dh10,000 is the maximum monthly compensation amount.

The second is for people whose base pay is more than Dh16,000; the monthly insurance fee is Dh10 (or Dh120 yearly). There is a Dh20,000 monthly maximum on the remuneration for this group.

If an employee's employment was not terminated for disciplinary grounds, the compensation is given for a maximum of three months after the date of unemployment. The amount is determined by taking 60% of the average basic pay from the six months prior to unemployment.