According to the Ministry of Human Resources and Emiratization (MoHRE), United Arab Emirates (UAE) employees will have to pay fines if they are not subscribed to the UAE unemployment insurance scheme. Specifically, the fine amounts to $108.
Meanwhile, subscribers who fail to pay premiums will face a fine of $54. These fines will be deducted from the salary or the end-of-service benefits that the employee is entitled to.
The UAE unemployment insurance scheme, which took effect on January 1 this year, mandates government and public sector employees to enroll in the program. The initial deadline for the subscription was June 30 but it was extended to October 1.
Subscription statistics
As of October 1, 6.5 million have already subscribed. However, MoHRE noted that there are still 14 percent of unregistered employees.
Apart from the said fines, employees who will not comply may also not be able to renew employment permits.
The ministry emphasized, “We urge workers to pay their due fines promptly in order to avoid administrative measures that will be taken against non-compliant individuals, including being denied new work permits.”
Workers who need to settle their fines may do so through the MoHRE website or application. Alternatively, they can pay through authorized business service centers.
Read: Emiratization in the UAE explained
UAE’s unemployment insurance scheme
Workers enrolled in the program can receive a maximum of three months’ monetary compensation in case of job loss. Depending on the basic salary, a subscriber can receive up to around $2700 to $5,400. This is granted that they fulfill the requirements.
Firstly, the subscription period should be a minimum of twelve consecutive months. Additionally, all insurance premiums must be paid. For those with a monthly salary of $4,300 or below, the insurance premium is $1.36; $2.72 for those with a salary above $4,300.
Moreover, there must be proof that the unemployment resulted from reasons other than voluntary resignation. Furthermore, individuals should not have been dismissed from their employment due to disciplinary issues.
Employees may subscribe to the program via the Involuntary Loss of Employment (ILOE) website and application. Other channels include physical self-service kiosks, ATMs, business service centers, exchange firms, banking applications, SMS text messages and telecom companies’ bills. They may also contact the ILOE call center at 600599555.
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