The UAE’s Involuntary Loss of Employment (ILOE) scheme provides financial security to employees who lose their jobs unexpectedly. It’s a mandatory program, meaning all eligible employees must contribute to the scheme by paying monthly premiums. But what happens if you miss a payment? This blog sheds light on the importance of timely payments, explains the associated fines, and helps you stay secure.

Understanding the ILOE scheme:

• Who is eligible? 

All private and federal government sector employees (excluding specific categories like investors, domestic helpers, and retirees) are required to participate.

• Premium structure: There are two categories based on your basic salary:

       Category A (up to AED 16,000): AED 5 + VAT per month

       Category B (above AED 16,000): AED 10 + VAT per month

• Benefits: In case of job loss due to reasons beyond your control, you can receive up to 60% of your basic salary for a maximum of 3 months, subject to fulfilling eligibility criteria.

Consequences of missed payments:

• • Non-payment for more than 3 months:

• • Cancellation of your insurance coverage: This means you won’t be eligible for benefits if you lose your job during this period.
  • Fine of AED 200: This penalty is imposed for non-compliance with the scheme.
• Fines remain unpaid for 3 months:

   The Ministry of Human Resources and Emiratisation (MOHRE) can take further action, including:

           Deduction of the outstanding amount from your wages: This will happen through the Wage Protection System.

           Withholding your end-of-service gratuity: This is the final payment you receive upon leaving a job.

           Other alternative methods deemed appropriate by MOHRE.

Staying on top of your payments:

Set up reminders: Use calendar alerts or banking features to ensure timely payments.

Choose a convenient payment method: Several options are available, including online payments, bank transfers, and payroll deductions.

Check your insurance status: Regularly review your policy details to confirm active coverage.

Remember: Timely premium payments ensure you and your family are financially protected in the unfortunate event of job loss. Don’t let missed payments lead to financial hardship and loss of valuable benefits.

By staying informed and making timely payments, you can reap the benefits of the ILOE scheme and navigate any job loss situation with greater financial security.