An SMS reminder to renew the Unemployment Insurance. EXPAT MEDIA

UAE employees can now renew their mandatory unemployment insurance for two years, offering greater flexibility and security for workers in both the private and government sectors. The Unemployment Insurance Scheme, launched on January 1, 2023, provides financial compensation to employees who lose their jobs due to circumstances beyond their control. The renewal option allows employees to extend their coverage without having to reapply annually. Workers can renew their policies via the official portal iloe.ae, Al Ansari Exchange centers, Tawjeeh and Tasjeel centers, or other authorized channels. The cost for a two-year renewal starts at Dh120.

What does the unemployment insurance cover?

The scheme offers cash compensation for up to three months, helping employees transition to new job opportunities. Compensation is calculated at 60 percent of the employee’s basic salary, with two categories: • Employees earning Dh16,000 or less – Up to Dh10,000 per month • Employees earning more than Dh16,000 – Up to Dh20,000 per month

Who is required to subscribe?

All private sector and federal government employees in the UAE must subscribe to the insurance. Freelancers can also opt in, but it is not mandatory. The scheme is also not mandatory for domestic workers, employees with temporary contracts, investors and business owners.

Penalties for non-compliance

Failure to renew or subscribe to the unemployment insurance can result in fines: • Dh400 fine for employees without insurance • Dh200 penalty for missing premium payments beyond three months • Failure to settle fines may lead to wage deductions and restrictions on new work permits

How to claim unemployment benefits

Eligible employees can file claims through the Insurance Pool’s e-portal, mobile app, or call center within 30 days of job loss. The compensation is paid monthly for up to three months, allowing workers time to secure new employment.

How much does the unemployment insurance cost?

Employees earning Dh16,000 or less pay Dh5 per month, while those earning more pay Dh10 per month. The policy is paid for by the employee and not the employer.

What happens if I don’t pay my insurance premiums?

If you fail to pay for more than three months, your insurance certificate will be canceled, and you will be fined Dh200.

How do I subscribe or renew my insurance?

Employees can subscribe via iloe.ae, Al Ansari Exchange centers, Tawjeeh and Tasjeel centers, du and Etisalat outlets, SMS, and other platforms approved by the Ministry of Human Resources and Emiratisation. ICA/Expat Media
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