The employees in the UAE should agree to the job loss insurance scheme as early as possible to avail the benefit from the scheme and file claims in time.
It is mandatory for employees working in the private sector and federal government employees to adopt the scheme.
Employees in the UAE can adopt the insurance scheme for up to one or two years. If there is a delay or failure in registering in the unemployment insurance scheme till June 30, 2023, it will result in a penalty of Dh400 for the employee.
Dana Kansou, manager of strategic partnerships at Dubai Insurance, states, ” People should join as soon as possible as there is a condition whereby employees will have to subscribe for at least 12 consecutive months to be suitable to submit a claim. This means that shall furnish the cash benefits for a maximum of three months to the employees after completing 12 months. “
For example, she notified that if an employee loses a job on January 15, 2024, and purchases the policy on January 20, 2023, they will not be able to file a claim.
She clarified that ” if they have registered for the scheme before losing the job for at least 12 consecutive months, then they are eligible for the claim. Therefore, people should subscribe as soon as possible to start the countdown if the eligibility of the 12 consecutive months to submit a claim.”
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The ILOE scheme will compensate suitable employees with a monthly cash benefit of up to 60 percent of their average basic salaries for the six months before loss of employment.
Two plans were submitted as a part of this scheme. In category A, employees with a basic salary of Dh16,000 or below will have to pay Dh5 plus VAT per month ( or Dh60 plus VAT for a year) for monthly compensation up to Dh10,000 for three months maximum.
For category B, workers earning over Dh16,000 are required to pay Dh10 plus VAT a month (Dh 120 Plus VAT for a year) for monthly compensation of up to Dh20,000 for a maximum of three months.
Employees must be legal residents of the country.
And employees in the UAE are eligible for 12 months of compensation during their whole working life in the UAE.
Hence, the scheme’s benefits will be removed once the employee gets the job within three months of eligible compensation.
A new scheme for the employees is being imposed in the UAE, which states that the employees in the UAE should adopt the job loss insurance scheme as early as possible to benefit from the strategy.