UAE job loss insurance scheme: Grace period announced for employees to register before fines apply

Subscription to the scheme started on January 1, 2023, for Emiratis and expats employed in federal government departments and private sector companies

by

Sahim Salim

/

Waheed Abbas

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Published: Tue 3 Jan 2023, 11:36 AM

Last updated: Tue 28 Mar 2023, 6:49 PM

Employees in the UAE eligible to subscribe to the unemployment insurance scheme have a grace period of six months to do so. The grace period ends on June 30, 2023, according to a notification.

Subscription to the scheme started on January 1, 2023, for Emiratis and expats employed in federal government departments and private sector companies.


The Involuntary Loss of Employment (ILOE) website specified the six-month grace period while quoting Ministerial Resolution No. 604 of 2022. “Also, please note that if the insured/worker was employed at a date later than January 1, 2023, he/she will have a grace period of four months to subscribe , starting from the day he/she landed in the UAE or after visa change.”

A call centre agent of the ILOE confirmed to Khaleej Times that employees will have to subscribe before June 30, 2023, failing which they will be subjected to a Dh400 fine.


Spearheaded by the Ministry of Human Resources and Emiratisation (MoHRE), the insurance scheme has ultra-low monthly premiums that range from Dh5 to Dh10, with the insured getting 60 per cent of their basic salaries for three months in the event of job loss for reasons other than disciplinary action or resignation.

The insured must be subscribed for at least 12 consecutive months to be eligible for a cash compensation.

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