The UAE has called for employees working in freezones and semi-government entities to register for the mandatory insurance scheme.
In a recent update, individuals in these sectors can now subscribe to the job loss scheme, as per the official website for Involuntary Loss of Employment (ILOE). A notification prompts eligible workers, asking if they are employed by semi-government entities or companies registered in a UAE Freezone, and provides a link to subscribe.
The UAE’s unemployment insurance scheme, which became effective on January 1, 2023, has been made obligatory for all employees across the country. Previously, employees in semi-government entities and freezones were exempt from this job loss insurance program. Please note the submission of the application is not mandatory for employers/investors.
The purpose of the job loss program is to offer financial support to individuals who have experienced unemployment. Eligible participants can receive 60 percent of their basic salary for a maximum duration of three months. However, the assistance is capped at AED20,000 per month. Failure to enroll in the unemployment insurance program will result in penalties starting from June 30th.
The insurance cost ranges from AED5 to AED10 per month and is provided by a limited number of insurance providers.
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