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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.

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.


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 register with your emirates ID and pay the premium.

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