Unemployment insurance. Now for Free Zones

You can now apply for the Involuntary Loss of Employment (ILOE) or Unemployment Insurance Scheme.

Previously, the scheme was only available to workers on the UAE's Mainland. However, it now appears that employees from both Free Zones and the Mainland, regardless of whether they are in the private or federal sector or semi-government entities, can benefit from the insurance scheme.

Under the ILOE, you can receive a salary equal to 60% of your basic salary for up to 3 months in case of job loss. The UAE's Ministry of Human Resources and Emiratisation (MOHRE) has set certain conditions that must be met for a worker to be eligible for compensation. These conditions include completing a minimum of 12 consecutive months in your previous job and experiencing job loss due to reasons beyond your control.

The insurance scheme is divided into two categories:

Category 1:

• Employees earning a basic salary of Dh16,000 or less.
• Insurance cost: AED5 per month (or AED60 annually)
• Monthly compensation: 60% of your basic salary, up to AED10,000

Category 2:

• Employees earning AED16,000 and above
• Insurance cost: AED10 (or AED120 annually)
• Monthly compensation: 60% of your basic salary, up to AED20,000

Who are not eligible to subscribe to the scheme:

• Investors (owners of the establishments in which they work)
• Domestic helpers
• Part-time employees
• Juveniles under the age of 18
• Retirees who receive a retirement pension and have joined a new job

Any questions? Feel free to leave them in the comments or send us a private message.