The last registration date for the UAE’s unemployment insurance scheme was 30th June 2023, which was extended to 1st October 2023 to give more time to the employees to sign up. While there’s a sheet of excitement among the residents to enroll in the scheme, many people are still unclear about how to claim the insurance amount in case they get terminated from their jobs involuntarily.
Let’s understand what happens when you lose your job and how to claim the insurance amount.
The government launched the Involuntary Loss of Employment (ILOE) scheme on 1st January 2023 to offer financial assistance to individuals terminated by their employers.
However, you don’t receive insurance benefits if you voluntarily leave your job. Employees must pay a monthly premium to qualify for financial support during a job loss. The unemployment insurance scheme is part of the country’s efforts to promote economic and social development by empowering human capital.
You must submit the claim within 30 days of the employer’s termination to one of these approved channels:
You will receive monthly compensation
whichever is earlier.
The monthly compensation is calculated at 60% of your monthly salary, and the maximum amount for category A employees will be AED 10,000 per month, while for category B will be AED 20,000 per month.
Once you submit your claim, the insurance company has to transfer the amount within two weeks if the application is in line with the terms and conditions.
However, you may be suspended from receiving the claim amount if you fall into any of the following conditions:
Thus, UAE aims to strengthen its human resources for economic and social development through this scheme. The unemployment insurance scheme allows financial flexibility to the residents while they look for another employment when terminated by their employers.
The last date to subscribe to the scheme is extended to 1st October 2023, and if an eligible employee does not enroll for the scheme by then, he must pay a fine of AED 400 for non-registration. The primary responsibility for registering for the UAE’s unemployment scheme is of the employee and not the employer.
While the new unemployment scheme proves to be a boon for many, misinformation can lead to multiple fines and penalties. Enroll in the scheme and understand its requirements to avoid non-compliance fines.
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