5.14 million Employees Enrolled in Unemployment Insurance Syestem, as per the Ministry of Human Resources & Emiratisation announcement.
Moreover, the enrolled employees number has exceeded 5.14 million even though the HRM launched the system in January 2023.
During the last 24 days, more than 140,000 workers and employees joined the insurance system which is a huge increase.
About the unemployment insurance system.
In fact the unemployment insurance system covers workers in the federal government and private sectors.
Since it aims to compensate insured workers with a cash amount for three months.
Besides that, the workers will benefit from this compensation in case their service at their workplace has ended.
Noting that there is a subscription value will be collected from the worker monthly during their work period.
The worker receives compensation on a monthly basis at a rate of 60% of the subscription salary (basic salary).
Also the employee can benefit from the compensation starting from the date of unemployment, and only for three months for each claim.
“Labor Market” magazine talks about the unemployment system.
The HRM Ministry confirmed in ” Labor Market” magazine that the unemployment insurance system provides a low-cost employment safety net.
Also, this will supports the professional path and living stability of workers in the UAE.
Surely this step would enhance the competitiveness of the labor market by relying on innovative mechanisms.
Without any costs on employers and business owners.
It noted that the subscription to this system is the responsibility of the employee, not the employer.
Also, the violation of non-subscription value is 400 dirhams, which will be applied starting from October 1st, 2023.
According to the ministry, two categories fall under the “Unemployment Insurance” system.
First category: employees whose basic salary is 16,000 dirhams or less.
The value of the employee’s subscription within this category is 5 dirhams per month, with a total of 60 dirhams per year.
While the maximum value of the monthly compensation is 10,000 dirhams.
Second category: includes those whose basic salary exceeds 16,000 dirhams.
The value of the subscription for this category is 10 dirhams per month, with a total of 120 dirhams per year.
While the maximum value of the monthly compensation is 20,000 dirhams.
The compensation is payable if the employee subscribed in the insurance at least for 12 consecutive months.
While the insured employee’s right to claim the compensation is forfeited if they leave the country or join a new job.
Also, it stressed that the period of the compensation value payment by insurance companies does not exceed 2 weeks from the date of the claim.
The insurance program compensates the insured person with a cash amount for a period not exceeding three months.
This will be in case the employee hasn’t resigned or dismissed the job due to disciplinary reasons.
Furthermore, compensation that the entitled employee receives is 60% of the basic salary average in the six months preceding the unemployment.
Surely the below are excluded from unemployment insurance system:
-The investor (the owner of the establishment).
-The helper labor.
-The temporary worker.
-Anyone under the age of 18.
As well as the retired who receive a pension and join a new job.
Also, the ministry called on workers and employees who have not registered themselves in the insurance system to visit the subscription channels.
Since the subscription channels allow registration easily and in easy steps.
The HRM Ministry pointed out that those covered by the unemployment insurance system can register in the system through the below:
-Visiting the insurance complex website www.iloe.ae.
-The iloe smart application.
-Kiosk devices.
-ATMs.
-Business service centers.
-Money exchange companies.
-Banking applications.
-Telecommunications companies’ bills.
-Through text messages.
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