More than 5.7 million people subscribe to UAE Unemployment Insurance Scheme

The deadline for joining the system is approaching, with fines for late subscribers

UAE workers can now be covered if they lose their jobs. Ravindranath K / The National
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More than 5.7 million employees have subscribed to the Unemployment Insurance Scheme since it went into effect on January 1, the Ministry of Human Resources and Emiratisation said on Tuesday.

Last week, the ministry announced 5.53 million people had signed up. Now, more than 5.6 million private-sector employees and more than 87,000 people in the public sector have signed up.

The announcement comes as the deadline for subscribing to the system approaches.

From October 1, a Dh400 penalty will be applied to those eligible for the system who have not subscribed.

This includes citizens and residents working in the private and public sectors, excluding investors (business owners who own and manage their businesses themselves), domestic workers, temporary employees, those under the age of 18, retirees who receive pensions, and those who have joined a new employer.

The ministry is urging those eligible for the system to register immediately to avoid fines and benefit from the advantages it offers.

The system aims to provide a social safety net for citizens and residents, ensuring a decent life for them and their families until alternative employment is found.

It also aims to attract and retain top global talent to the UAE labour market.

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The responsibility for taking part in the system falls on the employee, in accordance with Federal Decree Law No (13) of 2022 regarding unemployment insurance.

Employers are able to register their workers in the system without charging the employer any costs.

Employees and employers can subscribe by visiting the Involuntary Loss of Employment Insurance Pool website (, the ILOE smartphone application, designated kiosks, business service centres, exchange companies (such as Al Ansari Exchange), and banks’ smartphone applications.

The Unemployment Insurance Scheme is divided into two categories.

The first covers those with a basic salary of Dh16,000 and under, where the insurance premium is set at Dh5 a month (Dh60 a year).

The monthly compensation is capped at Dh10,000.

The second category includes those with a basic salary exceeding Dh16,000, and the insurance premium is Dh10 a month (Dh120 annually).

The monthly compensation for this category is capped at Dh20,000.

The insurance compensation can be claimed as long as the employee has been subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months.

People lose their right to compensation if they cancel their residency and leave the country or join a new job within the processing period.

The claim will be processed within two weeks of submission.

The compensation is calculated at the rate of 60 per cent of the average basic salary in the last six months before unemployment.

This is paid for a maximum of three months for each claim from the date of unemployment, provided the employee was not terminated for disciplinary reasons, and has not voluntarily resigned.

Updated: September 27, 2023, 3:20 AM