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Are you working in the UAE currently, and worried about losing your job with no financial backup? Do not worry! To deal with this, the UAE government has introduced insurance. It is an Involuntary Loss of Employment (ILOE) Scheme. This insurance was launched last year to be there for you when uncertain times occur.
In this article, we will give a detailed account of what ILOE insurance is all about in the UAE.
What is the UAE Involuntary Loss of Employment Scheme (ILOE)?
ILOE insurance commonly known as job loss assurance program. It was established by the Government in 2023. It covers both private and federal government sectors. If you have contributed to it for a period of 12 months, you can survive for upto for 3 months. It is for those who doesn’t lost job because of resignation or any indiscipline.
How Does ILOE Insurance Work?
ILOE insurance works through three basic phases:
Make Monthly Payments
The division of your basic salary into two categories determines your monthly premiums:
- If your basic salary does not exceed AED 16,000. Then after losing a job continuously for three months, you get 60% gross income up to AED 10,000. It is applicable for per month.
- If your basic salary is more than AED 16,000. You will also be entitled to 60% of that salary for a period of three months. However, the maximum monthly claim should not exceed AED 20,000.
Make a Claim
To make a claim, you need to have subscribed to ILOE insurance policy. But for not less than twelve months and paid all premiums. Important factors to consider during filing a claim:
- Claims should be filed within thirty days from termination.
- Pay all premiums on time.
- Your resignation / loss of employment must not have been as a result of disciplinary action.
- ILOE website, mobile application and authorized service outlets are available for submission of claims. You must be present in the UAE when submitting your claim.
Receive Benefits
Upon approval of your application, you will receive 60% of your basic wage. This is for up to three consecutive months.
Are employees working in free zone companies required to subscribe to the scheme?
Yes! As of May 3rd 2023, it is made mandatory. For all semi-government employees and Free Zone Companies to enroll in ILOE insurance cover.
How Much Does It Cost to Join the Scheme?
The cost of the insurance premium is based on the employee’s basic salary. So far, we have two plans:
Category A
- Eligibility: Employees having a basic wage of AED 16,000 or below
- Monthly Benefit: Equivalent to 60% of average basic salary over the last 6 months. Preceding involuntary job loss
- Maximum Benefit: Can be as high as AED 10,000 per month. For a maximum period of three months in one claim
- Premium: AED 5.25 per month
- Minimum Subscription Period: Not less than twelve months
Category B
- Eligibility: Employees whose basic salaries are above AED 16,000
- Monthly Benefit: Indemnities are calculated at sixty percent (60%) of an average monthly salary. Over the last six months preceding involuntary redundancy.
- Maximum Benefit: That can go up to AED 20,000 per month. For up to three consecutive months in any one claim.
- Premium: Costs only AED 10.50 every month.
- Minimum Subscription Period: Not less than twelve months.
Please remember that this scheme will only cover you 12 times. Regardless of whether you make more applications and win each time.
Payment Plan Options
ILOE insurance program has a variety of payment options for you to choose from. This will enable you to make decisions based on the best plan that matches your financial requirements. You can go for either of the two choices such as paying monthly or in one term. The available payment options are:
- Monthly: Pay every month.
- Quarterly: Four installments over one year.
- Semi-Annual: Twice per year.
- Annual: Once per year.
How to pay ILOE insurance online?
In order to check and pay ILOE insurance through internet, just follow these simple steps:
- Go to the ILOE website: This will allow you to visit the site of ILOE (ILOE – Dubai Insurance).
- Click Subscribe/Renew Here: If you agree with selecting this option click.
- Choose Identity and Sector: This action will open a new tab. It helps you pick between individuals or companies as your identity. Then select ‘Individual’ if you are an employee. Then proceed to select your sector from here like the private sector.
- Input Details: Provide details such as UID (Unified Identity Number)/Emirates ID Number. UAE mobile number, and Date of Birth on the ILOE portal.
- Sign in with OTP: You will receive an OTP in your registered mobile number. Get signed in by entering it there.
- Select Payment Method: Once logged in you have options of paying your insurance. For once all or in installments.
- Complete Payment: Visa card payments, credit cards can be used among others.
- Activate subscription: In UAE, once payment is made each year, coverage starts for one year.
If there is an unwanted end to your job, you can make a claim under the insurance plan. This can be done by submitting your claim through the authorized channels before 30 days. Elapse from the date of termination. A redundancy letter and copy of the final court judgment, if any, may also be indispensable.
Other Methods of Payment for ILOE Insurance in UAE
Available service providers for ILOE insurance also include:
- Al Ansari Exchange
- Tawjeeh or Tasheel Branches
- Via SMS or Text Message
- Kiosks
- BOTIM
Is Subscription to ILOE Insurance Compulsory?
In Saudi Arabia, it is obligatory for all employees to join ILOE including both those who work in government agencies as well as private sectors. This provides financial support to people during difficult moments such as when one loses his/her job. It assists them in getting by until they get another employment opportunity thus reducing their burden.
The UAE unemployment insurance does not apply to whom?
There are various groups of employees who cannot be part of this system. They include:
- Business people
- Housemaids
- Casual labor workers
- Under 18s
- Retired individuals who are receiving pensions and have been employed elsewhere.
For one to qualify for ILOE, it is mandatory that one has contributed for at least 12 months. They must be employed consecutively. This means that in case you become a victim of involuntary loss of employment, you can claim cash benefits. For a maximum period of three months consecutively.
What Are the Penalties for Not Subscribing to ILOE Insurance?
AED 400 is the prescribed amount according to MOHRE. For not being registered under the Involuntary Loss of Employment (ILOE) Scheme in UAE. They may choose to pay their insurance premiums monthly, quarterly, every half year or annually.
How to request for ILOE Insurance in UAE
ILOE Claim Submission Procedure
- Browse the official ILOE website or mobile app (www.iloe.ae)
- Choose “Submit your claim”
- Get logged in using an OTP that you receive on your registered mobile number
- Before filing a compensation claim, cancel your employment visa
- Click on “Proceed to your Claim Process”
- State the justification of cancellation and its date
- Also attach any notes or support files
- Select bank transfer as a payment method. Then provide IBAN, account number and account holder name.
- Choose the exchange name where you would like to receive funds from (with valid Emirates ID)
- Press “Submit Claim”
Compensation Particulars
- The highest monthly sum that can be paid amounts up to 60% of basic wages. Counted from the last six months before losing my job.
- The maximum payment per month is set at AED 10,000. For workers earning up to AED 16,000 per month and AED 20,000 for higher earners
- Claims shall be limited to three months each.
Every update concerning your application will be forwarded via email and message. At the same time, don’t forget about accessing the “My Claims” tab after logging into the customer portal. To get more help contact our ILOE Assistance Services team at [email protected]. Or call us on 600 599 555.
How to check ILOE insurance in the UAE?
Here are a few ways of checking whether or not you have an ILOE insurance policy in place:
1. Visit the ILOE Portal
At the official website for the ILOE Insurance Fund, you can check your ILOE insurance details.
2. Download the ILOE Mobile App
You can access your information about insurance on the go through the ILOE mobile app.
3. Reach out to the ILOE Call Center
For any inquiry regarding your insurance status, get in touch with 600599555. Speak to someone at the call center of ILOE.
MOHRE eServices
ILOE Quick Pay service is provided by the UAE Ministry of Human Resources and Emiratisation. Here you can find out about your insurance with the help of borrowing your EIDA. Also use Unified No, Card No or Person Code. The ILOE insurance scheme applies to all private sector and federal government workers in the UAE. For continued coverage, premiums must be paid on time. If payments are more than 3 months overdue, this could lead to a cancellation of your policy. Or you can be charged a fine.
If you lose your job against your will, you may be eligible for compensation benefits. That doesn’t exceed AED 10,000 per month for 3 months if you earn a basic salary of less than AED 16,000. Or not exceeding AED 20,000 per month for 3 months if your salary is above AED 16,000. However, in order to benefit from these benefits, one must have this scheme for at least twelve months.
The Process of Online Renewal of Insurance
- Official ILOE Website: Go to iloe.ae.
- Click on ‘Subscribe/Renew Here‘: Look for the red button on the homepage and click it.
- Category Selection: A new page will open where you need to choose your employment category. (Private sector, Federal Government employee, or Free-zone worker).
- Confirm Your Details: Click the ‘Confirm’ button after selecting your category.
- Sign In: Enter your Emirates ID, UAE mobile number, and date of birth. You will receive an OTP to verify your identity.
- Renew Your Policy: Once logged in, you will see the option to renew your insurance policy. Click on ‘Renew’ or ‘Subscribe’.
- Payment: You will be led to a payment page. Put in your card details and finish up with the transaction.
- Confirmation: After successful payment, you can get ILOE insurance for another year.
Other Renewal Options
In Person
Renew at any Al Ansari Exchange branch or a government business center (Tawjeeh or Tasheel).
Additional Information
Price
The premium is 5 AED per month for those who earn less than 16,000 AED. While those who earn more than that are charged 10 AED per month. This sums up to 60 AED or 120 AED each year correspondingly.
Renewal Reminders
So as not to forget, renewal reminders will be sent to you prior to the policy’s expiry date.
Fines: Not renewing your ILOE insurance could attract a penalty of AED 400.
Make sure your Emirates ID and mobile number are available for an ease of processing. Especially at the time of renewal.
Checking Fines for ILOE insurance
Here is how to check fines for Involuntary Loss of Employment (ILOE) insurance in the UAE:
Using MOHRE App
Download MOHRE App: It is accessible on both iOS and Android devices.
Sign In: Log in using UAE Pass. If you do not have UAE Pass, you will need to create one.
Access ILOE Quick Pay: On the app’s homepage, locate “ILOE Quick Pay” and click it.
Choose Search Option: Choose the method that you want to use while searching for your fines:
- Emirates ID number
- Unified Number (UID No.)
- Labor card number
- Personal code number (14-digit number on your labor card)
Enter Details: Provide all necessary details based on what you have chosen. Then press the ‘Search’ button.
View Fines: If there are no outstanding payments, a message will notify you. However, if there are some fines, their particulars such as amount and date shall display.
Payment: You can pay any fines online using a credit or debit card. Or opt for installment payments if necessary. Payments are processed by MOHRE within one working day.
Alternative Method: MOHRE Website
You can also check your fines through the MOHRE website by following similar steps as above. Thus, ensuring you have your UAE Pass ready for login.
Important Notes
Fines: Fines can range from AED 200 to AED 400, depending on the nature of the violation. For example, failure to register or late payments. These must be settled promptly to avoid further penalties, such as salary deductions.
In-Person Checks: If you prefer, you can visit authorized MOHRE service centers. Inquire about and pay your fines in person.
Tips for ILOE Insurance
- ILOE insurance is mandatory for all UAE employees.
- Provides financial assistance for involuntary job loss (up to 60% of salary for 3 months).
- Monthly premiums: AED 5 (salary ≤ AED 16,000) or AED 10 (salary > AED 16,000).
- Watch for renewal notifications via SMS or email.
- Renew online at the official ILOE website.
- Pay premiums on time to avoid fines (AED 200 for late payments).
- Three-month grace period for renewal; renew on time to avoid issues.
- To renew your Emirates ID, remember to have all the documents you will need.
- If you need assistance or information, please contact our ILOE customer service team.
Conclusion
ILOE insurance is an important social security for UAE employees. It provides 60% of your average salary for up to 3 months in case of job loss beyond your control. This is compulsory for all private sector and federal staff. Meaning that they are covered during uncertain periods. You can also renew your policy which requires simple steps only. Being aware about what ILOE does will save you penalties. It also helps in times of unanticipated labor adversities which might hit you unexpectedly.
