The unemployment rate is rising in the UAE as the global trends of businesses and markets have changed. To assist people who are unemployed, the government of UAE has launched an insurance scheme. The purpose of the unemployment insurance scheme is to help employed nationals and foreigners when they are unable to make ends meet. 

If you have arrived in the UAE for employment purposes, then you must enroll in the unemployment insurance program after getting a letter of appointment. The UAE unemployment insurance scheme is vast, so before you rush to enroll in the program, you need to gather the basic information. Come with me to explore the UAE unemployment insurance scheme, including its eligibility criteria, required documents, and application process. 

Eligibility Criteria of UAE Unemployment Insurance Scheme   

  • The majority of people rush to apply for the insurance scheme without examining the eligibility criteria. When their applications are rejected by authorities, they label the department of insurance as biased and protest against it. Instead of wasting time on such activities, you need to see the eligibility criteria before you apply for the insurance scheme.
  • An Emirati national or foreign resident who is in UAE for employment purposes is eligible for the insurance program.
  • An Emirati national or foreign resident who is a worker whether in the public or private sector, is eligible for the insurance program.
  • An Emirati national or foreign resident must have been actively working in an industry.
  • An Emirati national or foreign resident must register for the insurance program after 1 January 2023 and within 4 months of employment entry visa can collect insurance payment.
  • An existing Emarti national or foreign resident must have subscribed to the program by June 20, 2023. 

Who Does Not Meet Eligibility Criteria?  

If you are a worker on a contract basis then you are not eligible for the insurance program. 

  • If you are an investor, you are not eligible for the insurance program.
  • If you are an employee under 18 years old, you are not eligible for the insurance program.
  • If you are a retired person on a pension, you are not eligible for the insurance program. 

Note:

The majority of the people ask if they will remain a part of the insurance program if they leave the UAE after enrollment in the program. According to the 2024 updates of the UAE insurance program, an employee cannot claim payment of insurance after leaving the UAE. 

UAE Unemployment Insurance Scheme Coverage

When it comes to the insurance program, the first thought that pops up in my mind is what the UAE unemployment insurance scheme covers. According to the recent updates, the program provides a monthly payment. Rules instruct that an unemployed person must receive 60% of his previous salary. 

When it comes to the per month installment of the insurance program that you provide to the UAE government, it is 5 AED for the people who earn AED 16,000. If you are earning more than AED 16,000 then you need to pay AED 10 per month. If you enroll in the insurance program, the amount will be automatically deducted from your salary.  

Required Documents for UAE Unemployment Insurance Scheme 

  • An applicant must have proof of employment and ensure that his job position meets the eligibility criteria.
  • An applicant must provide a passport if he is a foreign worker in the UAE.
  • An applicant must provide the Emarti ID whether he is a national or foreign resident in the UAE.
  • An applicant must provide the banking details to subscribe to the insurance program. 

Rules of UAE Unemployment Insurance Scheme 

The employer fires the majority of the people for a valid reason and then they apply for insurance payment. Some people ask if they can avail payment of an insurance program when they are fired by the employer due to valid reasons. For this, I recommend people to read the page of instructions before they apply for the payment. 

  • If you are fired by the employer due to a valid reason, such as complaints about the quality of your work, the employee cannot avail of the payment.
  • If the employee is fired due to committing a criminal activity, such as stealing assets of the company, the employee cannot avail the payment of the insurance scheme.
  • If the employee is fired due to committing unethical activity which is not permitted by the employer, the employee cannot avail the payment of the insurance scheme.
  • If you have resigned from the job position voluntarily, you cannot claim the payment of insurance.
  • If an employee loses his job position due to reasons that are beyond his control, such as economic crises, business closures, or company downsizing.
  • If you have other sources of income, such as investment or any hidden source, you cannot claim the payment. 

Application Process of UAE Unemployment Insurance Scheme 

The application process for the UAE unemployment insurance scheme is simple, but if you have not used any medium to apply for the unemployment insurance scheme then you need to follow the steps I have mentioned below. All you need is a strong internet connection and here we go. 

Step 1: Go to the Insurance Pool website and its link is provided below.
Insurance Pool Website Link: https://www.iloe.ae/ 
Step 2: Go to the ILOE portal.
Step 3: Register your account by entering all the personal information.
Step 4: Select the type of program you are intended to enroll in.
Step 5: Submit the banking details.
Step 6: You will receive an OTP on the provided email or phone number to verify the account.
Step 7: Enter the OTP in the empty bar and then tap the verification button.
Step 8: Create a password and then log in to your account entering that password.
Step 9: Open the UAE unemployment insurance program application form.
Step 10: Provide all the information, including your name, email address, Emarti ID, and phone number.
Step 11: Provide the details of your employment, such as the type of job position you have and the salary details.
Step 12: Upload the documents that I have mentioned above.
Step 13: Double-check the application form and then submit it.
Step 14: The application will be approved within 7 working days. 

Benefits of the UAE Unemployment Insurance Scheme 

Financial Support: The basic purpose of the insurance scheme is to help unemployed people when they are unable to afford daily life commodities expenses. The insurance program ensures that the person receives enough payment that it help him manage the monthly expenses. 

Security Net: Another benefit of the insurance program is that it secures a person and liberates him from the stress of losing a job. Because the person knows that if the job is lost, he can get monthly income from the insurance program. 

Encourage Job Search: Due to the burden of financial expenses, one is unable to find a suitable job. But insurance program holders are free from the stress of financial burden; therefore, they can find a suitable position even if it takes a few months. 

Comprehensive Coverage: Other insurance programs do not provide sufficient payment, but this one offers a 60% payment of the previous job’s salary. 

FAQ’s

A person who enrolls in the insurance program pays monthly installments for a long period. In case he loses his job position, he can collect monthly payments from the UAE government. An individual receives 60% of his monthly salary. 

Investors and business persons are exempt from the unemployment insurance program. People who are working on contract, temporarily working or domestic workers are also eligible for the UAE unemployment insurance program. 

In case, a person fails to subscribe to the insurance program in the grace period, he has to pay AED 400 to the iloe as a fine. 

According to the recent updates, it is mandatory to enroll in the UAE insurance program whether you are a public or private employee. 

The termination letter or the application for the cancellation of Mohre’s work permit is proof of unemployment. 

Final Words 

The unemployment insurance program is the light of hope for the people who are suffering in the darkness of financial crises. According to the statistics department, the unemployment rate has surged in the past few years due to the economic conditions and the changing global trends. Such times bring a challenge for the people who are fired by their employers due to downsizing a company or financial bankruptcy of an industry. 

In such conditions, applying for the unemployment insurance fund is a wise idea. It not only liberates a person from the stress of monthly expenses but also provides you security when you are on the job. You can follow the steps that I have explained above to apply for the UAE unemployment insurance fund. Before you apply, see the eligibility criteria and the required documents.