ILOE scheme: Dhs400 fine deducted from salary for those not signed up

Employees will not be granted any new work permits until they’re paid… 

UAE employees who have not yet signed up for the Involuntary Loss of Employment (ILOE) Scheme will face a Dhs400 fine, according to the Ministry of Human Resources and Emiratisation (MoHRE).

The UAE’s mandatory Unemployment Insurance Scheme came into effect on Sunday, January 1 2023 and the grace period was extended to October 1, 2023. During this time, over six and a half million employees signed up.

The scheme applies to all Emirati and foreign workers in the private and public sectors. To check whether or not you have a fine, visit the MoHRE’s app, website, or any business service centre.

Note that those who subscribe to the insurance but fail to pay more than three months will also face a fine of Dhs200.

The fines will be deducted from the employee’s salary or end-of-service gratuity.  Employees can also choose to pay in installments. Until the fines are paid, employees will not be granted any new work permits.

Those who wish to appeal the fine can do so, with decisions issued within 15 working days.

How much does the UAE Unemployment Insurance scheme cost?

Category A: Workers with a basic salary of Dhs16,000 or less will need to pay a monthly insurance premium of Dhs5, i.e. Dhs60 annually.

Category B: Those with a basic salary exceeding Dhs16,000 will need to pay Dhs10 per month, i.e. Dhs120 annually.

Employees can choose to pay the premium on a monthly, quarterly, half-yearly, or annual basis. Do note that in order to claim the benefits, employees must pay the monthly premium for at least 12 consecutive months.

Here’s how to apply for the ILOE scheme…

All eligible employees can subscribe via seven channels including the Dubai Insurance website portal, or by visiting their nearest Al Ansari Exchange or government business centres (Tawjeeh or Tasheel). Make sure you have your Emirates ID number and UAE mobile number handy.