The scheme came into effect on Sunday, January 1, 2023, and is mandatory for all employees in the UAE.

UAE announced the launch of a new insurance plan for unemployed government and private sector workers. The plan will pay employees 60 percent of their basic salary for up to three months from the date of unemployment. The scheme caps out at AED20,000 a month.

Here are the 10 things you need to know about the new unemployment insurance scheme:

How to apply: Visit the iloe.ae website, click subscribe now and follow the steps:

Cost: AED5 per month for those earning a basic salary of AED16,000 or less, AED10 per month for those with a salary higher than AED16,000
Deadline: Six months until June 30. Workers who change their visa or begin work in the UAE after January 1, 2023, will have a grace period of four months
Fine for non-subscripton: AED400
Fine for missing instalment premium: AED200
Exempted categories: Freezone employees, investors/company owners, domestic helpers, temporary contract workers, juveniles and retirees
Subscription channels: Insurance Pool website and its smart application, bank ATMs and kiosk machines, business service centres, money exchange companies, du and Etisalat, SMS
Minimum subscription period: 12 months for eligibility of pay-out
Maximum compensation: Three months
Non-applicable: Fraud or deceit involved in his claim or if the establishment where they work for is fictitious, existing complaints, result of non-peaceful labour strikes or stoppages

For those eligible, compensation benefits include:

The monthly compensation is 60 percent of the average basic salary over the most recent 6 months prior to the Involuntary Loss of Employment
For Category A: Maximum claim benefits: AED10,000 per month
For Category B: Maximum claim amount: AED20,000 per month
Maximum compensation for any one claim: 3 consecutive months
Maximum period of benefits: During the insurance period over the entire work life of the Insured in the United Arab Emirates the aggregate Claim Payment shall not exceed 12 monthly benefits (regardless of the number of claims submitted)
Authorities have revealed a grace period for sign up of six months.

“As per the Ministerial Resolution No. 604 of 2022 regarding the Involuntary Loss of Employment (ILOE), the eligible employees have a grace period of 6 months (till 30 June 2023) to subscribe in the ILOE,”.