Iloe Insurance UAE

Losing your job can be frightening, especially if you did not choose to leave. Your income is gone, but you still have bills to pay! The prospect of having no money coming in, whilst money is going out, can be quite daunting. However, there is a solution. The Involuntary Loss Of Employment (ILOE) insurance scheme can provide you with some financial protection when you need it the most.

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What Is The ILOE Insurance Scheme?

ILOE is an unemployment insurance scheme that offers you financial coverage for up to three (3) months. ILOE can help if you lost your employment due to a reason other than resignation or if your dismissal was the result of disciplinary action. It is like a safety net for income to ensure that you can still manage to pay for the necessities while you are searching for your next job.

The federal government in the UAE wants to ensure that citizens and residents working in the United Arab Emirates (UAE) can still provide the basic needs of their families while they are taking the next step in their career path. Without the benefits of unemployment insurance, you could be left struggling to feed your family.

That is why the UAE government requires all eligible employees working in the UAE to subscribe to the ILOE scheme. Simply put, the UAE government helps you so that you can help your family.

Is ILOE just an unemployment insurance scheme?

ILOE is more than mere insurance coverage. Whilst insurance schemes generally cover your assets, ILOE offers you financial support by means of a monthly cash benefit. It’s like wallet protection which you would need if you experience involuntary loss of employment. This type of financial protection can help you get through financially-challenging times so that you are not totally cash-strapped.

Is The ILOE Insurance Scheme Mandatory?

Yes, it is. On the 1st of January 2023, the federal government made it compulsory for all eligible citizens and residents working in the private sector, as well as government employees, to have an unemployment insurance scheme. UAE nationals and residents working in the UAE can receive a level of financial support in times of need.

Who is covered by the ILOE scheme?

Eligible employees working in the private sector and the federal government can be covered by the ILOE insurance scheme. To be eligible, you need to be over 18 years old, employed full-time and have subscribed to the insurance scheme for a minimum of 12 months.

Who is excluded from the ILOE scheme?

If you are the owner of the company, a domestic assistant, on a temporary contract, or receiving a pension (but have also started a job), you would not be included with other eligible employees.

What about free zone employees?

At the inception of the ILOE Scheme, this benefit was restricted to employees in the private sector and government employees. You had to be registered with the Ministry of Human Resources and Emiratisation (MoHRE) in order to qualify for ILOE benefits. Free zone employees were exempt from coverage.

The law around this has now changed. If you are employed in the free zones, you can apply under the category of “Non Registered in MoHRE” and thereby be eligible to subscribe for these benefits as well. As a non-registered employee from the free zones, you will still be covered by the ILOE scheme.

What Products Are Available?

There are two unemployment insurance scheme plans available for involuntary loss of employment. The dissecting point for the two categories is based on a monthly basic salary of 16,000 AED. Your basic salary is the basis of the calculation. For example, if you were under Category A initially, you could move up to Category B. Thus, if your salary changes, then your monthly premium will change, too.

Category A

If your 6-month average earnings were below 16,000 AED monthly:

  • Your maximum claim benefits can be up to 10,000 AED per month (for a maximum of three months).
  • Your monthly insurance premium will be 5 AED plus VAT per month.

Category B

If your 6-month average earnings were above 16,000 AED monthly:

  • Your maximum claim benefits can be up to 20,000 AED per month (for a maximum of three months).
  • Your monthly insurance premium will be 10 AED plus VAT per month.

What Is The Maximum Benefit You Can Receive?

  • You can claim a monthly cash benefit for up to 3 months.
  • The maximum claim amount is up to 60% of your average basic salary. (The average is calculated on your average basic salary for 6 months before the loss of income).

Are There Any Benefit Waiting Periods?

To qualify for the Involuntary Loss Of Employment benefits, you need to have subscribed to the insurance scheme for a minimum of twelve (12) months. You would also need to ensure that your monthly premium was paid for the entire year before you could claim from the ILOE scheme.

What Is The Deadline For ILOE Subscription In UAE?

The deadline for subscription to the ILOE scheme in the UAE was extended until the 1st of October, 2023. If you are an eligible employee and have not yet done so, it is important that you subscribe to the scheme as soon as possible.

The Ministry of Human Resources and Emiratisation (MoHRE) has made it very clear that the consequence of non-subscription is a 400 AED fine.

How To Subscribe To The ILOE Scheme

There are a variety of options available to make subscribing easier. The ILOE Portal or smartphone app are direct channels that you can use, and there are no additional costs to use them! There are other channels that you can use, like business centres, exchange centres, kiosks, banking apps, and ATMs.

You can pay your subscription on an annual basis, half-yearly, quarterly, or monthly.

Ensure you have signed up for this unemployment insurance before the 1st of October, 2023. Remember that you can contact ILOE at 600-599-555 or send an email to iloehelp@dubins.ae.

FAQs

As a business owner, should I offer workshops to educate my employees about ILOE?

This is a good option for companies. Your human resources department could offer valuable insights and information about different insurance providers and their benefits. They could also teach your workers that in the event of loss of employment, ILOE can be advantageous.

My company downsized. Do I qualify for ILOE benefits?

Downsizing in a company means that you have endured the involuntary loss of employment. ILOE benefits will apply here if your subscription is a year old, and up to date. You could receive benefits for up to three months while you look for a new job.