One of the most challenging parts of unemployment is an individual’s financial resources wearing thin. And without a steady income, some may struggle to cover their living expenses. In the United Arab Emirates (UAE), the unemployment insurance scheme, also known as ILOE, provides economic aid to nationals and expatriates during unemployment. This article will teach you how to subscribe to the program. The ILOE scheme is established under Federal Decree Law No. 13 of 2022.
What is the ILOE unemployment insurance scheme?
ILOE stands for Involuntary Loss of Employment. The UAE’s unemployment insurance scheme is available to eligible employees in both public and private sectors, offering a monthly benefit worth 60 percent of their basic salary in the past six months before unemployment.
For employees whose salary is AED16,000 or below (Category A), the maximum benefit is AED10,000 per month for up to three consecutive months per claim. For those with a salary of more than AED16,000 (Category B), the monthly benefit is AED20,000.
Once subscribed to the program, Category A employees must pay a premium fee of AED5 per month, plus VAT; AED10, plus VAT, for Category B employees. You can opt to pay the fee monthly, quarterly, semi-annually or annually. The minimum subscription period before an employee can avail of benefits is 12 months.
In the UAE, ILOE is unavailable for investors or owners of companies they work in, domestic helpers, temporary contract workers, retirees entitled to a pension and joined a new job, and employees under 18 years old. 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.
Read: UAE unemployment insurance – What is ILOE?
Eligibility criteria for the ILOE insurance scheme
Understanding the eligibility criteria for the ILOE Insurance Scheme is crucial for ensuring you can benefit from this financial safety net. The scheme is designed to support employees who face involuntary loss of employment, providing them with a monthly cash benefit. Here are the key criteria you need to meet:
- Nationality and Residency: You must be a UAE national or a resident.
- Employment Sector: You should be employed in the private or federal sector.
- Basic Salary: Your basic salary must be AED 4,000 or more.
- Employment Status: You must not be a temporary contract employee, domestic helper, retiree, investor, or juvenile under 18.
- Subscription Period: You need to have subscribed to the ILOE Insurance Scheme for at least 12 consecutive months to be eligible for compensation.
It’s important to note that the UAE Government has exempted certain categories of workers from participating in the ILOE Insurance Scheme. These include investors, domestic helpers, temporary-contract workers, juveniles under 18, and retirees who are entitled to a pension and have joined a new job.
By meeting these eligibility criteria, you can ensure that you are protected under the ILOE Insurance Scheme. This protection includes a monthly cash benefit worth up to 60% of your average basic salary for a maximum period of three months, providing you with financial stability during times of unemployment.
How to subscribe to the UAE’s ILOE scheme
If you’re eligible to join the UAE’s ILOE scheme, the main subscription channel is via the ILOE portal. Registering via the ILOE website (or app) is free of charge. Subscribing to the unemployment insurance UAE program is crucial for ensuring financial support during periods of unemployment.
Step 1: Visit the ILOE portal
First, visit the ILOE portal. Then, under the “Individual” section, choose the “Private” option.
Step 2: Sign in
Before you can access the main dashboard, you must sign in. To do this, choose the “With OTP” option on the sign-in page. Provide an Emirates ID number and your mobile number. Then click on the “Request OTP” button. Once you receive the OTP, input it and click on the “Submit” button.
Step 3: Confirm your personal details and create your ILOE plan
Upon signing in, you must confirm your personal details that the system has automatically generated based on your Emirates ID. Tick off the box you can find under the personal information area.
On the same page, you can choose whether you’d like your policy coverage to cover one year or two years, and if you’ll pay monthly, quarterly, semi-annually or in full. Maintaining your monthly premium payments is essential to ensure continued access to unemployment benefits.
Step 4: Proceed with the payment
Based on the plan you created, the system will compute how much you’ll pay. Next, you must agree to the Terms and Conditions before clicking on the “Pay Now” button. You’ll have the option to provide your email so you can get a copy of your Certificate of Insurance (COI). Upon clicking “OK,” you will be redirected to the payment page. Enter your card details to complete the payment.
On your home screen, you will be able to view details of your policy, including the total premium paid.
Alternative methods
If you want to subscribe in person, you may visit an Al Ansari Exchange center or a Tawjeeh or Tasheel service center. When visiting any of their branches, be sure to bring your Emirates ID and mobile phone. You must present your ID, provide your phone number and fill out the ILOE insurance form to create your policy plan. Afterward, you will pay the corresponding premium. You will receive a receipt as confirmation.
You can also visit MBME Pay and uPay kiosks. You can find a kiosk near you by referring to the respective app’s online maps.
Another method is via the C3Pay app and card. C3Pay is a product of Edenred, which is a central bank-authorized WPS (Wage Protection System) agent. Download the C3Pay app, available on Apple and Android devices, and subscribe from there.
Final thoughts
Being unemployed is challenging. To help you cover your basic needs during times of unemployment, learning how to subscribe to the UAE’s ILOE scheme is essential. As long as you meet the eligibility and you’ve been subscribed for at least 12 months, you can enjoy a monthly benefit worth 60 percent of your basic salary. Once eligible, you can file a claim to receive monthly compensation based on your basic salary level.
For more miscellaneous stories, click here.
