Losing jobs can be difficult, especially when you have bills to pay. The UAE government has introduced Involuntary Loss of Employment Insurance (ILOE) to help people during such a time. This insurance gives you money for a short time each month if you lose your job for reasons outside your control. It helps you stay stable while you look for a new job.

This insurance is required for all workers in the UAE, whether you are local or expatriate. It covers both government and private sector employees. The amount you receive is based on your basic monthly salary. This assistance helps you manage your daily expenses without stress after losing your job.

Joining the ILOE scheme is easy and low-cost. The fee is based on your salary bracket and is easy to pay. You can subscribe online in just a few steps. Once you are part of the scheme, you can claim benefits if you follow the rules and lose your job without fault.

To require your benefits, search quickly and submit the required documents. Make sure all your details are perfect to avoid delays or rejections. Many people remember by making small mistakes, so follow this process carefully. This way you can get your help without any problems.

So, let's go straight in.

What Is ILOE Insurance In The UAE?

In the United Arab Emirates, Unemployment Insurance (ILOE) helps Emirati citizens and foreign workers who lose their jobs without warning. It applies to people working in the federal government or private companies who lose their jobs for reasons such as company downsizing. It does not cover people who have quit their jobs, been fired for breaking rules, or lost their jobs due to bad behavior.

Since January 1, 2023, it is compulsory for all workers in the government and private sector to register for this unemployment insurance scheme. This rule comes from the Federal Decree Law No. 13 of 2022 and says that every employee needs to buy this insurance.

This insurance provides monthly money (up to 3 consecutive months), which can be up to 60% of the average basic salary in the last six months before you lose your job. To get this money, you have to pay a monthly fee without break for at least 12 months.

Dubai Insurance Company manages a group of insurance companies that offer this job loss plan. These companies work together and share the cost and responsibility of covering people who lose their jobs.

Why Is ILOE insurance important?

The ILOE insurance scheme is a helpful measure that supports financial security and job security. Here’s why it’s important:

Compliance: It ensures compliance with UAE employment regulations and laws, helps companies and workers to live within the legal system.

Financial security: It provides financial assistance to workers if they lose their jobs for reasons beyond their control. This helps them manage their lives while they seek new jobs.

Attracting talent: It makes the UAE more attractive to skilled people by providing strong job safety and support during difficult times.

What Does ILOE Insurance Cover?

ILOE insurance, or Involuntary Loss of Employment Insurance, is a special scheme that provides financial assistance to people who lose their jobs due to reasons beyond their control. It is popular in places like the UAE and helps people manage their expenses while looking for a new job. ILOE insurance typically covers the following:

Monthly Payment After Job Loss

ILOE insurance provides up to 60% of the basic salary for three months each month. This amount helps a person pay for daily necessities while looking for a new job.

Medical And Family Support

Some schemes also provide extra help, such as covering the proportion of medical bills during the unemployment period. This ensures that the person and their family may still need health care.

Help Finding a New Job

In addition to money, ILOE insurance can also provide help such as job search assistance, career advice, and skills training. These tools help a person prepare for a new job quickly.

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How to Subscribe to The ILOE Insurance Scheme

Joining the ILOE insurance scheme is easy and doesn’t take much time. You can sign up in different ways, making it easy for all workers to apply. Just follow these steps:

Step 1 - Choose How You Want to Apply

You can sign up for ILOE insurance in a few different ways. Choose the one that works best for you:

• Online websites: You can apply on the UAE government website or through approved insurance sites.

• Help from your company: Some companies help their staff sign up when they join or renew their contracts.

• Insurance agents: Some insurance companies also help workers register for ILOE.

Step 2 - Have Your Details Ready

To complete your application, you will need to have these details:

• Your Emirates ID

• Your Labor Card Number

• Your Employment Contract (if required)

• Your Phone Number and Email

Having these ready will help you complete the process quickly and without any issues.

Step 3 - Choose The Right Plan for You

You need to choose a plan based on your salary. There are two main types:

• Category A: For people who earn AED 16,000 or less per month

• Category B: For people who earn more than AED 16,000 per month

Choose the plan that matches your salary so that you get the right coverage.

Step 4 - Make The Payment

After you have chosen the plan, you need to pay for it. You can pay in one of these ways:

• Credit or debit card

• Bank transfer

• Online payment

Make sure to keep your payment receipt or reference number in case you need it later.

Step 5 - Get Your Confirmation And Certificate

After making the payment, you will receive a message via SMS or email with your insurance details. You will also receive a digital certificate, which you can download from the website.

Need Help Signing Up?

If you are having trouble signing up, you can:

• Call MOHRE Customer Service for assistance

• Ask your company's HR team for assistance

• Visit a Service Center for personalized assistance

ILOE Plans and Premium Costs

ILOE insurance is cheap and easy to afford. The UAE government has kept the costs low so as not to burden workers. There are two types of plans based on your basic monthly salary:

Category A: For workers who earn AED 16,000 (USD 4,356) or less as a basic salary. The cost is AED 5 (USD 1.30) per month, plus VAT. That’s about AED 60 (USD 16) + VAT for a year. The highest monthly payment in this plan is AED 10,000 (USD 2,722). Even if 60% of your salary is more, you cannot get more than AED 10k per month.

Category B: For workers who earn more than AED 16,000 (USD 4,356) as a basic salary, the cost is AED 10 (USD 2.6) per month, plus VAT. It is AED 120 (USD 32) + VAT per year. The highest payment in this plan is AED 20,000 (USD 5,445) per month.

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Conclusion

ILOE insurance helps workers in the UAE stay safe with financial support. The plan keeps getting better and now covers more people. If you are an employee or a business setup company in Dubai, knowing the ILOE rules helps you comply with the law and get the most out of the plan.

FAQs: Questions & Answers

Q1. How to Check ILOE Insurance Expiry Date?

You can check the expiry date of your ILOE insurance by signing in to your account on the MOHRE website. Open the policy details page, and you will see when your ILOE insurance expires.

Q2. How to Check ILOE Fines?

You can check your ILOE fines on the ILOE portal or mobile app. Log in with your Emirates ID and registered mobile number, then open the 'Fines' section on your dashboard to view any outstanding fines. You can also use the MOHRE app, log in with your Emirates ID, and go to the 'Unemployment Insurance Services' section to view fines.

Q3. Is ILOE Insurance Mandatory?

Yes, from 1 January 2023, the UAE has made ILOE insurance mandatory. All eligible workers must register for this insurance scheme.