The United Arab Emirates (UAE) has introduced the Involuntary Loss of Employment (ILOE) Insurance Scheme to provide financial support to employees who unexpectedly lose their jobs. This initiative aims to ensure economic stability for individuals during transitional periods between employment.
Understanding the ILOE Insurance Scheme
The ILOE Insurance Scheme offers temporary financial assistance to employees who lose their jobs due to reasons beyond their control, excluding cases of resignation or dismissal for disciplinary reasons. Eligible individuals can receive up to 60% of their average basic salary from the six months preceding unemployment, for a maximum of three consecutive months per claim.
Eligibility and Subscription Requirements
As of May 3, 2023, all employees in the UAE, including those working in free zones and semi-government entities, are required to subscribe to the ILOE scheme. Exemptions apply to:
- Investors or business owners working at their own companies
- Domestic helpers
- Temporary contract workers
- Individuals under 18 years of age·
- Retirees receiving a pension who have rejoined the workforce
Consequences of non-subscription
Failure to subscribe to the ILOE scheme or missing premium payments for over three months may result in fines imposed by the Ministry of Human Resources and Emiratisation (MOHRE). A penalty of AED 400 applies for not subscribing within the grace period, and AED 200 for delayed premium payments exceeding three months.
Renewing Your ILOE Insurance
To renew your ILOE insurance:
- Visit iloe.ae.
- Click on ‘Subscribe/Renew Here’.
- Select the applicable category: Private Sector, Federal Government Employee (Public Sector), or Non-Registered in MOHRE (Free-zone Workers).
- Confirm your selection.
- Sign in using the OTP sent to your registered mobile number.
- Review and confirm your details, then select the policy term.
- Proceed to payment to complete the renewal.
Conclusion
The ILOE Insurance Scheme is a significant step by the UAE government to safeguard employees against unforeseen job loss, ensuring financial stability during career transitions. Timely subscription and adherence to payment schedules are crucial to fully benefit from this initiative. For comprehensive details and assistance, visit the official ILOE website or contact their customer service.
