Protecting your finances is crucial, particularly during difficult times. Involuntary Loss of Employment (ILOE), another name for unemployment insurance, provides assistance in the event of an unexpected job loss. However, you risk paying hefty fines if you skip deadlines or payments. Moreover, this may result in your work permit getting revoked or money withheld from your paycheck.
The Ministry of Human Resources and Emiratisation (MoHRE) advises employees to pay fines as soon as possible. It is crucial that all employees understand how to verify and pay ILOE insurance fines online in the United Arab Emirates.
What is the ILOE scheme?
Involuntary Loss of Employment (ILOE) is a unique scheme that provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job. The eligible employees will get a monthly cash benefit up to 60 percent of their average basic salaries of the six months prior to loss of employment.
Cash benefit shall be provided for maximum three consecutive months for a claim only for the workers who pay the monthly premium for at least 12 consecutive months.
Why ILOE insurance is important
Unemployment insurance serves as a crucial safety net for workers, offering financial help during periods of joblessness. Fines, however, may result from breaching the regulations. It is essential to pay these fines on time in order to comply with the law and prevent further penalties.
ILOE insurance scheme eligibility
Emiratis and residents working in the federal government and private sectors are eligible for this scheme. Exempted categories include 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. Meanwhile, it is voluntary for employees in free zones and semi-governmental entities, excluding those working in Dubai International Financial Center and Abu Dhabi Global Market.
ILOE insurance scheme cost
The ILOE scheme has two levels, directly tied to your basic salary.
Category A: It offers a maximum monthly benefit of AED10,000. Employees earning up to AED16,000 are eligible for this category (Category A). The monthly premium is AED5 plus VAT.
Category B: It provides up to AED20,000 monthly compensation. This category is for employees who earn a basic salary of AED16,000 or higher. The monthly premium for Category B is AED10 plus VAT.
Policyholders can choose between one or two-year policy periods, with the total VAT included in the first payment. However, benefit payments are capped at three consecutive months, and total claim payments are limited to a maximum of 12 months over an individual’s working life in the UAE.
Adhering to your premium payment schedule is essential to be an insured worker and avoid policy cancellation and penalties. Maintaining a clean employment record and legal residency status is necessary to remain eligible for benefits.
Read more: UAE pension disbursements for March soar to $208.7 million
Risk for not subscribing to ILOE insurance scheme
The UAE Ministry of Human Resources & Emiratisation (MoHRE) will issue monetary fines to employees who fail to register for the insurance scheme or are not up to date on payments for more than three months. Individuals who fail to subscribe to the insurance within the grace period will have to pay a fine of AED400 imposed by MoHRE, and a fine of AED200 in case the insured fails to pay insurance premiums for more than three months.
How to pay fines for ILOE
Step 1: Go to the MoHRE ILOE Quick Pay website.
Step 2:Â Sign in with your UAE Pass.
Step 3: Select an option from the search for dropdown on the screen.
Step 4: Enter the designation number and click on Search.
Step 5: Now you can view the fine information.
Step 6: Scroll down, enter your mobile number and email address, and click Pay.
Paying ILOE insurance fine through MoHRE app
Step 1: Download the MoHRE app and sign in with UAE Pass
- Download the MoHRE app, available for both Apple and Android devices.
- Log in using your UAE Pass – the digital ID for UAE citizens, visitors, and residents.
- Choose the employee option and enter your labour card number. The app can help you find your labour card number if you don’t know it.
Step 2: Access the ILOE quick pay service
- Go to the app’s home page and tap on the ILOE Quick Pay service.
- Choose one of these options from the menu:
- Emirates IDÂ number
- Unified Number (UID No.)
- Labor card number
- Personal code number (a 14-digit number on your labour card)
- Enter the relevant information and click Search.
Step 3: Check your ILOE fines
- If your payments are up to date, you will see a clean record message. If not, you will see the fines you need to pay. It will show the person’s name, fine date, and pending amount.
- Pay the fines online using a credit or debit card or choose to pay in instalments.
- After you make the payment, MoHRE processes it in less than one working day, resolving your fines quickly.
Frequently Asked Questions (FAQs)
1. What is the purpose of the ILOE scheme?
The ILOE insurance scheme aims to provide a certain degree of protection for individuals in the private sector and federal government sectors by compensating them for a limited duration not exceeding three months for each claim in case of job loss because of termination. This is to provide them with a dignified life in the UAE. It also aims to enhance the competitiveness of Emirati cadres in the job market, attract the best global talents and retain them in the workforce.
2. Is subscription in the ILOE scheme mandatory?
Yes, subscribing to the ILOE insurance scheme is mandatory for all the private sector and federal government sector employees.
3. In the event of non-payment of the insurance premium, what are the consequences?
The insured will have to pay a fine and his insurance policy will be cancelled. This will be in accordance with the applicable law if the insured fails to pay the insurance premiums in accordance with the payment plan he selected for a period of time. It should be at least three months from the date the insurance premium is due.
4. How is the insured person who works on a commission basis classified?
The insured whose salary is on a commission basis may choose the contribution category if the basic salary in the employment contract is not specified.
For more miscellaneous stories, click here.
