Applicable fields include boosting the air quality and green technology
uae16 hours ago
The extended deadline to sign up for the UAE’s mandatory job loss insurance scheme is just weeks away. Employees working in the private sector, federal government departments and free zones have to subscribe to the Involuntary Loss of Employment (ILOE) scheme before October 1, failing which fines will apply.
Close to 5 million people have already subscribed to the low-cost job security net that offers financial support for a limited period.
Here is your ultimate guide to the scheme, eligibility, how to pay, fines and more.
Is it mandatory to subscribe to the ILOE?
Yes, it is. Employees will be fined for failing to subscribe to it.
Can employees who are not registered with the Ministry of Human Resources and Emiratisation (MoHRE) register?
According to an alert posted on the ILOE website, companies that are not registered with the MoHRE “can subscribe on behalf of their employees”. They would need to submit their trade licence along with a request letter to companyreg@iloe.ae
What are the related penalties?
— If an employee does not subscribe to the scheme before the October 1 deadline, a Dh400 fine will be imposed.
— If an employee subscribes to the scheme but fails to pay the premiums for more than three months from the due date, the insurance certificate will be cancelled, and a penalty of Dh200 will be imposed.
How will the fines be collected?
Employees must pay the fines. If they fail to do so for three months from the due date, the amount will be “deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable” by the MoHRE, according to a ministerial resolution.
Will non-payment of fines affect one’s job prospects in the country?
Yes. As per a ministerial resolution issued in this regard, the “employee will not be eligible for a new work permit until all due fines are paid within the specified timeframe”.
Who are exempted from the scheme?
According to the ILOE website, these are the exempted categories
— Investors (owners of companies they work at)
— Domestic helpers
— Temporary contract workers
— Juveniles under the age of 18
— Retirees who are entitled to a pension and joined a new job
How do employees subscribe to the scheme?
— Free channels (no service charges):
— Other channels
How does the scheme work?
Employees have to pay an ultra-low-cost premium to subscribe to the ILOE. If they lose their jobs due to reasons other than disciplinary action or resignation, they will receive financial support for up to three months.
If I subscribe to the scheme this month and lose my job weeks later, will I get the compensation?
No. Employees become eligible for compensation only if they are subscribed to the scheme for at least 12 months. Subscriptions to the scheme began in January 2023. If a person subscribed to it in January, he/she becomes eligible for compensation only in case of job loss after December 2023. If a person subscribes to the scheme this month (September), he/she becomes eligible only after 12 months from September.
What are the two ILOE plans and their benefits?
— Category A: Basic salary Dh16,000 or below
Cost: Dh5 + VAT per month
Compensation Benefit: 60% of basic salary; up to Dh10,000 per month
— Category B: Basic salary above Dh16,000
Cost: Dh10 + VAT per month
Compensation benefit: 60% of basic salary; up to Dh20,000 per month
NOTE: Insurance premiums can be paid monthly, quarterly, semi-annually or annually.
For how long will the benefits be offered?
For up to three months.
Under what circumstances will the benefits be ceased?
What are the conditions to claim compensation?
ALSO READ:
Applicable fields include boosting the air quality and green technology
uae16 hours ago
The youngster is also a published author, having penned a book about the life of a girl navigating immigration
uae16 hours ago
The pilot study findings revealed the tool can reduce radiologist workload by up to 80 percent while missing zero cases of tuberculosis
uae16 hours ago
Several property brokerages in Dubai and Abu Dhabi have been fined for violating local laws
uae18 hours ago
Earlier this year, the Emirates was removed from the FATF grey list, reflecting the country’s commitment to fighting financial crime
uae19 hours ago
Addition of features such as cinemas, indoor and outdoor pools allow owners to charge a high premium amid a shortage of such properties in hotspot areas
uae20 hours ago
Visitors on May 18 and 19 can avail complimentary, combined entry to the new museum and the city’s three Stories of Nations exhibitions, and a 50 per cent discount on all other attractions
uae21 hours ago
Investors are watching the US Consumer Price Index (CPI) that is to be released on Wednesday
uae1 day ago