UAE's Involuntary Loss of Employment Scheme: Last Call and Key Takeaways 📢
The Involuntary Loss of Employment (ILOE) Scheme, introduced earlier this year, aimed to provide employees with a financial safety net in case of unforeseen job loss. The scheme came as a boon, offering low-cost premiums and significant compensation benefits. However, the deadline to register has seen many scrambling at the eleventh hour.
What Happened:
Despite authorities issuing multiple reminders, some residents remained unaware of the impending October 1 deadline.
The Consequences:
Fines and Penalties: A fine of Dh400 for those failing to register by the deadline. Further, a Dh200 penalty for non-payment of premiums three months after enrolling. Severe penalties, including a Dh20,000 fine, await those exploiting the scheme's benefits.
Salary Deductions:
Unpaid fines will be extracted from the employees' wages or end-of-service benefits, emphasized by the Ministry of Human Resources.
Work Permit Restrictions: Defaulters on penalties won't be eligible for a new work permit until fines are cleared.
Exceptions:
Certain groups are exempt, such as investors, domestic workers, temporary staff, minors below 18, and retirees with a new employer. All other federal and private employees must register, or they'll face penalties.
Benefits Breakdown:
Salaries ≤ Dh16,000: Dh5 monthly premium with a Dh10,000 monthly compensation cap.
Salaries > Dh16,000: Dh10 monthly premium with a Dh20,000 monthly compensation cap.
Benefits are awarded only after 12 consistent months of enrollment. Compensation is 60% of the average base salary from the preceding six months before unemployment, available for up to three claims, spanning three months each.
Eligibility:
The insurance doesn't cater to those dismissed for disciplinary reasons or those who resigned.
For those who missed the memo, the rush and penalties serve as a reminder to stay informed, especially concerning significant regulatory changes. For others, it's a testimony to the nation's commitment to its workforce's well-being. Please log in to https://www.iloe.ae/ register with your emirates ID and pay the premium.