UAE residents who were early subscribers to the Involuntary Loss of Employment Insurance (ILOE) have begun receiving renewal reminders, marking one year since the launch of the mandatory insurance against job loss. Messages are being sent to policyholders, urging them to renew their policies before expiration.
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Key Points:
- Renewal Notifications: Subscribers to the ILOE scheme are receiving renewal reminders, prompting them to update their details and renew their policies. Renewal can be completed through the Ministry of Human Resources and Emiratisation’s (MoHRE) digital platforms.
- Renewal Process: The MoHRE’s digital platforms provide a user-friendly interface for subscribers to renew their policies. Individuals can access the renewal process by clicking on the ‘Subscribe/Renew Here’ button. Early renewals ensure continued financial protection against job loss.
- Financial Protection: Early subscribers, who enrolled in the scheme when it became available on January 1, 2023, are now financially protected in the event of job loss. Compensation for job loss is applicable to those who have subscribed continuously for at least 12 months.
- Subscription Statistics: The MoHRE announced that approximately 14% of eligible employees are yet to subscribe to the mandatory ILOE scheme. Over 6.7 million UAE residents have subscribed to the scheme since its initiation, with the enrolment deadline ending on October 1.
- Penalties and Fines: A Dh400 fine was imposed on workers who failed to sign up during the enrolment period. Subscribers failing to pay premiums for more than three months face a Dh200 fine. Employees issued work permits after October 1, 2023, must subscribe within four months or face a Dh400 fine.
- Exempted Categories: Certain categories, including investors, domestic helpers, temporary contract workers, juveniles, and retirees entitled to a pension, are exempt from the mandatory subscription. Emiratis and expatriates in the federal government and private sectors are required to subscribe.
- Insurance Categories and Compensation: The ILOE scheme consists of two categories based on basic salary. For those earning Dh16,000 or below, the premium is Dh5 per month, with a maximum monthly compensation of Dh10,000. The second category, for those with a basic salary exceeding Dh16,000, has a premium of Dh10 per month and a maximum compensation of Dh20,000.
- Compensation Details: Compensation is provided for a maximum of three months from the date of unemployment, excluding terminations for disciplinary reasons. The amount is calculated at 60% of the average basic salary in the six months before unemployment.
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The renewal process emphasizes the sustainability of financial security for subscribers and underscores the importance of ongoing participation in the ILOE scheme.
