Early job loss insurance subscribers receive an alert to renew policies
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Early subscribers are now financially protected if they are cancelled; this is why
UAE residents who were among the first to sign up for mandatory job loss insurance in early 2023 began receiving reminders to renew their policies.
“Your ILOE (Involuntary Loss of Employment Insurance) policy is due for renewal on January 2, 2024. Please log in to your account… to update your details and renew your policy before it expires.”
reads a text message sent to this journalist, who had signed up for the plan on January 1, 2023, the first day it was available.
Renewal can be done through Ministry of Human Resources and Emiratization(MoHRE) by clicking on the ‘Subscribe/Renew here’ button.
The renewal reminders come even as MoHRE announced on Wednesday that around 14 per cent of eligible employees are yet to sign up for the mandatory scheme. However, early subscribers are now financially protected in the event of job loss. Although millions of residents have signed up to the scheme, they can only claim compensation for job loss if they have signed up to the scheme for at least 12 consecutive months. This means that people who signed up in January 2023 are now entitled to compensation.
They cannot claim compensation if they leave the country or get a new job.
According to the MoHRE, more than 6.7 million UAE residents have signed up to the scheme since it came into effect. The deadline to register ended on October 1. A fine of Dh400 was imposed on workers who did not register.
A fine of Dh200 is applied to subscribers who do not pay premiums for more than three months. Employees whose work permits were issued after October 1, 2023 must subscribe to the scheme within four months, otherwise they will face a fine of Dh400.
Employees who do not pay their fines for three months from the due date will have the amount deducted from their salary or end-of-service bonus. No new work permits will be issued until the fines are paid.
Emiratis and expatriates working in the federal government and private sector must subscribe to the plan. Exempt categories include investors, domestic employees, workers with temporary contracts, young people and retirees who are entitled to a pension.
The ultra-low cost plan is divided into two categories:
The first covers those with a basic salary of Dh16,000 or less, where the insurance premium is set at Dh5 per month (Dh60 per year). The maximum monthly remuneration is set at 10,000 dirhams.
The second covers those with a basic salary above Dh16,000, where the insurance premium is Dh10 per month (Dh120 per year). The monthly remuneration for this category is capped at 20,000 dirhams.
Compensation is paid for a maximum of three months from the date of unemployment, provided that the employee has not been dismissed for disciplinary reasons. The amount is calculated at a rate of 60 percent of the average basic salary during the six months prior to unemployment.
News Source: Khaleej Times
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