Dhs400 fine comes into effect for those applying for job loss insurance from Oct.1, MOHRE says

Gulf Today, Staff Reporter

The Ministry of Human Resources and Emiratisation (MOHRE) started as of Sunday, Oct.1, 2023, applying a fine of Dhs400 to non-participants in the unemployment insurance system, whether they are workers for the federal government sector or the private sector, citizens or residents.

Investors (owners of the facility in which they work), domestic workers, temporary contract workers, persons under 18, a retiree who receives a retirement pension and has joined a new job are excluded from registration in the unemployment insurance system, according to MOHRE.

According to the MOHRE's latest statistics, the number of subscribers to the  system since its implementation on Jan.1, 2023 until Sept.25, 2023 amounted to 5,730,000 employees.

The responsibility for participating in the system falls on the employee in accordance with Federal Decree Law No.13 of 2022 regarding unemployment insurance, while it is optional for employers to register their employees in the system without any costs.

Registration in the system can be done via the website “www.iloe.ae”, the ILOE smart app, via self-service kiosks, business service centres, exchange centres, and via bank apps on smart phones.

According to the MOHRE, the unemployment insurance system includes two categories, the first of which includes every employee whose basic salary is Dhs16,000 or less, whose contribution value is Dhs5 a month or Dhs60 annually. The maximum value of monthly compensation for this category is Dhs10,000.

The second category, according to MOHRE,  includes every employee whose basic salary exceeds Dhs16,000. The subscription value is Dhs10 a month or Dhs120 yearly. The maximum monthly compensation value for this category amounts to Dhs20,000.

The employee is entitled to the compensation on the condition of participating in the system for at least 12 consecutive months. The claim for the value of compensation will be forfeited if the employee leaves the country or joins a new job, MOHRE pointed out.