Job loss Insurance is mandatory for all employees in UAE from Jan 2023 as per Ministry of labour (MoHRE): 2024

Hurray! Finally very good news for all workers working in UAE. Employee of all private sector companies and federal government department can now get the scheme from low as AED 5 per month only.

Effective from January 1, 2023 subscribing the insurance against your job loss will be compulsory for all employees as per the Ministry of Human Resources and Emiratisation.

The best thing about this that the amount per month is as low as you cannot believe. Yes, it is only AED 5 per month.

After getting this insurance you will be able to get some cash amount for a limited period not more than three consecutive months per claim after the job lost.

Subscription Channels:

• Bank ATMs and kiosk machines
• Insurance pools website (www.iloc.ac) and smart application
• SMS
• Etisalat and Du services
• Business Services centers
• Money Exchanges

Insurance provider companies

As per the Ministry of Human Resources and Emiratisation also known as MoHRE UAE Dubai Insurance Company will provide the Insurance with these below Insurance companies:

• Oman Insurance Company
• Abu Dhabi National Takaful Company
• Orient UNB Takaful Company
• Orient Insurance
• Abu Dhabi National Insurance Company
• Dubai Insurance Company
• Al Ain Ahlia Insurance Company
• Emirates Insurance Company
• National General Insurance Company

How much I have to Pay Premium

There are two Categories for this type of Job Lost Insurance in UAE:

Category 1: Basic Salary above AED 16,000

Premium (You have to pay): AED 10 per month or AED 120 per Annum

Category 2: Basic Salary below AED 16,000

Premium (You have to pay): AED 5 per month or AED 60 per annum

Limit of Compensation

Category 1: Compensation can't be more than AED 20,000 per month.

Category 2: Compensation can't be more than AED 10,000 per month.

Claim Calculation Method for mandatory Insurance

1. The Monthly compensation will be 60 per cent of the salary over the last 12 months before the job loss.
2. Maximum Compensation time: Three consecutive months.

Eligibility for mandatory Insurance

For getting the Insurance claim the Insured person should meet the following criteria:

• Maximum Subscription period is 12 Consecutive months.
• Premiums should be paid on time.
• Resignation should not be the reason for the claim.
• The claim must be submitted within 30 days from the date of job loss.
• Worker should not absence from the work before the job loss.
• Insured person should be in UAE.

Scope of the Unemployment Insurance Scheme

This scheme can be avail by all the workers in the private and federal sector except:

• Investor or business owner who own and manage their business by themselves.
• Temporary Worker
• Under 18 Employee
• Retirees who joined a new Employer and received pension.

Some important points on Job loss Insurance in UAE

Here are below some very informative points about Job loss / Unemployment Insurance in UAE:

• Deadline to apply for the insuranec is June 30, 2023 Including One month grace Period. All the employees who start work in UAE from January 1, 2023 or the workers who change their visa from or after January 1, 2023 will get four months grace period instead of one month grace period for others.
• There will be fine of AED 200 for missing the premium of Insurance.
• There will be AED 400 fine on those who will not apply for the insurance.
• Domestic worker, Investor visa holder, Company owners/Partners or temporary contract workers are exempted from this insurance.
• The compensation will be for maximum three months.
• Workers have to apply for minimum one year Insurance that can be paid yearly or monthly as per their choice.

I hope this article helps you a lot to know all about the mandatory Unemployment / Jobloss Insurance for all Private Sector / semi government Employees in UAE.
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