Unemployment Insurance Scheme Fines Deducted from Salaries
The UAE government has made it mandatory for employees to register with an unemployment insurance scheme called the Involuntary Loss of Employment (ILOE) this year. The registration deadline was extended to October 1, 2023. Failure to register before 1st October has resulted in fines for employees.
If your employees have failed to register, The Ministry of Human Resources and Emiratisation (Mohre) will provide a list of employees' names who have failed to register and will receive fines. These fines need to be settled as soon as possible by the employee, or the fines will increase to AED 200 per month. MoHRE is expected to deduct the fine amount directly from the Wages Protection System (WPS) at the time of salary or end-of-service payment, whichever is applicable. Additionally, until the fines are paid, the company will not be able to renew or cancel the employees labour cards and visas.
Unsubscribed employees should register for ILOE without any further delay. They can log on to https://www.iloe.ae/ and explore the available subscription channels to complete the process.
Unsubscribed employees are required to pay the MOHRE fine of AED 400 within the next three months to avoid further complications. The payment can be made through the MOHRE app or website using the following steps:
- Log into https://www.mohre.gov.ae/
- Under the 'Services' tab, select 'ILOE Quick Pay'
- Enter the necessary details such as Emirates ID Card/Labour Card/UID #/MOHRE Person Number (where applicable)
- Follow the steps to complete the payment of the AED 400 fines.