The forgiveness period for unemployment insurance subscriptions is ending soon, and employees who cannot meet the deadline of June 30 will have to pay a fine.
The subscription was opened on January 1, 2023, and under Federal Decree-Law No. 13 of 2022, all employees of both private and public sectors must sign up for the scheme.
Officially called Involuntary Loss of Employment ( ILOE) insurance, it aspires to give financial security to the residents in case they lose their jobs due to reasons other than disciplinary action or resignation.
After the June 30 deadline, strict fines shall be imposed on those who fail to obey the law, including those who did not subscribe. Unpaid penalties shall be subtracted from the employee’s salary or end-of-service benefits.
Below are the penalties that have been specified in the law:
1. Dh400 fine:
This will be for the employees who fail to avail of the scheme before June 30, 2023.
2. Dh200 fine:
For employees failing to pay premiums for more than three months from the due date
3. Dh20,000 fine for every case:
This will be for employees conspiring with the insured to obtain unemployment insurance benefits.
Benefits:
Those employees covered by unemployment insurance could get around 60 percent of their average basic salaries if they lose their jobs. Besides, per the claim, the cash benefit shall be provided for three consecutive months.
However, an employee should have paid a premium for at least 12 consecutive months to make a claim. Proof of involuntary job loss shall be submitted within 30 days, and other conditions apply.
How much does it cost?
Those employees earning a basic salary of Dh16,000 and below will pay Dh63 (including VAT) every year for the insurance, while those getting more than Dh16,000 can subscribe for Dh126 a year. Employees can subscribe through the ILOE portal
( http://www.diniloe.ae/nsure/login/#/).
Or through its official app. Payments can be made through exchange centers, business centers, kiosks, ATMs, bank apps, and repayment kiosks. An SMS channel will be opened soon.
