All government and private sector employees must take the new insurance policy introduced by the UAE government with effect from 1st January 2023. It is a new move my Ministry of Human Resources and Emiratization to make people live a standard life even when in job lost situation. The insurance policy will support the insured employee for three (3) months of job loss period. The salary or remuneration for the period will be sixty percent (60%) of the employees’ salary. There are certain job loss cases that are not covered by the policy.
Who will get the job loss insurance protection?
All Federal Government employees and private sector employees who had subscribed to the Job Loss Insurance plan will get the protection. But there are some conditions. The job loss should not be on disciplinary reasons. Also, if the job loss is due to a resignation, it is not covered. Further, those who are not getting a job within the 3 months protection period, the subsequent months without payment are not covered.
Details of loss protection plans available
There are two plans under this insurance scheme. Naming A & B respectively, plan A has a monthly premium of AED 5 and plan B has AED 10 per month. The following chart will give a clear picture:
How to apply?
One can apply for the policy on Involuntary Loss of Employment (ILOE) website – that is “www (dot) iloe (dot) ae. There opening page has plan details that will look as below:
Next step is to select a policy – that is A or B (please refer policy category details above) by clicking “SUBSCRIBE” button. It will open a new page as below:
First time registrants should have a valid mobile phone number and UID number or Emirates ID to subscribe.
To subscribe, employees can also approach few other centers such as Tawjee Centre, Al Ansari Exchange, Tasheel, Etisalat Kiosks, upay and c3 pay applications.
Exempted category from Job Loss insurance policy
Not all can subscribe to job loss insurance protection. Following are the categories exempted:
- Free Zone employees.
- Investors i.e., Owners or partners of companies they work at.
- Domestic helpers.
- Temporary contract workers.
- Juveniles under the age of 18.
- Retirees who are entitled to a pension and joined a new job.
Terms and Conditions of Job Loss Insurance Policy
- Protection benefit shall be provided for maximum three consecutive months.
- Only those who pay the monthly premium for at least 12 consecutive months.
- The monthly compensation is 60 per cent of the average basic salary.
- This calculated based on most recent six months prior to job loss.
- Total 12 monthly benefits for an employee during his or her work in the UAE-( Number of claims submitted and approved will not cross the 12 months altogether even if claim is normal)