ILOE Insurance UAE: Cost, Categories and Claims

ILOE insurance (Involuntary Loss of Employment) is the UAE’s mandatory unemployment insurance for employees in the private sector and the federal government, Emiratis and expatriates alike. Workers with a basic salary of AED 16,000 or less pay no more than AED 5 a month; above that, no more than AED 10 a month, plus VAT. If you lose your job for reasons other than resignation or discipline, you can claim 60% of your basic salary for up to 3 months, capped at AED 10,000 or AED 20,000 a month, after at least 12 months of continuous subscription. Not subscribing is fined AED 400.

Do this next for your ILOE insurance

• Check you are subscribed on the ILOE website or app with your Emirates ID.
• Pick a payment schedule you can keep: monthly, quarterly, half-yearly or yearly.
• Keep paying until you leave the job; missed premiums break your eligibility and bring fines.
• Lost your job? Claim within 30 days of the end of employment.

Is ILOE insurance mandatory?

Yes. Under Federal Decree-Law No. 13 of 2022 on the Unemployment Insurance Scheme, all employees in the federal government and private sectors must subscribe, including workers in free zones. Subscription has been open since 1 January 2023, and the premium is paid by the worker, although some employers choose to pay it for their staff.

Who is exempt?

• Investors who own the establishment they work in.
• Domestic workers.
• Employees on temporary contracts.
• Juveniles under 18.
• Emiratis who meet retirement conditions, and retirees receiving a pension who have joined a new job.

ILOE categories, premiums and compensation

Item	Category A	Category B
Basic salary	AED 16,000 or less	More than AED 16,000
Premium	No more than AED 5 a month (AED 60 a year) plus VAT	No more than AED 10 a month (AED 120 a year) plus VAT
Compensation	60% of the basic salary	60% of the basic salary
Monthly cap	AED 10,000	AED 20,000
Maximum duration per claim	3 months	3 months

The category is based on your basic salary, not your total package. Workers paid by commission with no basic salary in the contract can choose either category. Compensation is calculated on the average basic salary of the six months before the job loss, and the law limits total benefits during your working life in the UAE.

Example

Ahmed earns a basic salary of AED 6,000 and a total of AED 9,000. He is in Category A and pays AED 5 a month plus VAT. If he is made redundant after two years, he can claim 60% of AED 6,000, which is AED 3,600 a month, for up to three months.

How to subscribe and pay ILOE premiums

The UAE government lists nine channels, run with MOHRE and the ILOE scheme:

1. The official ILOE website.
2. The ILOE app on Google Play and the App Store.
3. The ILOE contact centre.
4. Business service centres (Tasheel and Tawjeeh).
5. ATMs and kiosks, including MBME Pay, C3Pay and UPay.
6. Exchange companies, through Al Ansari Exchange centres or its app.
7. Mobile apps of some banks.
8. SMS through du and e& (Etisalat).
9. The BOTIM app.

Subscribing on the ILOE website or app

1. Open the ILOE website or app and choose to subscribe.
2. Enter your Emirates ID number and mobile number, then verify with the OTP.
3. Confirm your details and category, which is based on your basic salary.
4. Choose the payment frequency and pay by card.
5. Download the policy certificate and keep it.

If you pay through your salary card, our FAB salary account guide and similar bank app guides show where insurance payments appear.

How to claim ILOE compensation

1. Make sure your work permit has been cancelled, or your labour dispute resolved, and that you are still in the UAE.
2. Submit a claim on the ILOE website or app within 30 days of the end of your employment or the resolution of the labour dispute.
3. Provide the requested details, such as your bank IBAN and proof of termination.
4. The insurer reviews the claim and pays compensation within two weeks of submission if it is approved.

Conditions for a successful claim

• At least 12 continuous months of subscription.
• All premiums paid on the schedule you chose.
• Job loss was not a resignation.
• Not dismissed for disciplinary reasons under the labour law or federal HR law.
• No ongoing work absence complaint against you; check with our absconding status check.
• No fraud, no fictitious employer, and job loss not caused by strikes or non-peaceful protests.
• You are present in the UAE.

Compensation stops if you start a new job during the payment period.

ILOE fines

Violation	Fine
Not subscribing to the scheme	AED 400
Not paying premiums	AED 400 according to the UAE government portal; MOHRE’s 2023 announcement set AED 200 for premiums unpaid for more than three months

Unpaid fines can be collected from your salary or end-of-service benefits and can hold up new work permits, so clear them quickly. Our guide to the ILOE fine check explains how to see and pay what you owe.

Changing jobs, salary or employer

• Your policy is personal: it is linked to your Emirates ID, so keep paying when you move between employers without a gap.
• Salary goes above AED 16,000 basic: you move to Category B, with the higher premium and the higher compensation cap.
• Emiratis: UAE nationals in the private sector and federal government are covered too, and the scheme is meant to support Emiratisation by giving private sector workers a safety net.
• Leaving the UAE: you must be in the country to claim, so compensation is not paid if you have already left.

The laws behind ILOE

• Federal Decree-Law No. 13 of 2022 regarding the Unemployment Insurance Scheme.
• Cabinet Resolution No. 97 of 2022 on the procedures and controls for implementing it.
• Ministerial Decision No. 604 of 2022 regarding the scheme.
• Ministerial Decision No. 340 of 2023 amending the penalties.

ILOE and your other job protections

ILOE does not replace your end-of-service gratuity, notice pay or unpaid salary. Those are still owed by your employer under the labour law; read our guide to Article 120 of the UAE labour law. After a job loss, also check your grace period so you can stay legally while you look for work.

Official sources: the UAE government’s Insurance against job loss page, MOHRE’s announcement on ILOE fines and Federal Decree-Law No. 13 of 2022.

This guide is part of our UAE Visa and Emirates ID Guide.