If you work in the UAE, you have probably heard of ILOE, the Involuntary Loss of Employment insurance scheme. It is mandatory for most employees, it costs very little, and it can pay part of your salary for a few months if you lose your job through no fault of your own. Yet many workers only learn the details when they need to claim, or when a fine appears. This guide explains how the scheme works in plain English.
What is ILOE?
ILOE is a government-backed unemployment insurance scheme. Employees pay a small premium, and if they lose their job involuntarily (for example, through redundancy), they can receive a monthly payment for a limited time while they look for new work.
Who must subscribe?
Subscription is mandatory for most employees in the federal government and the private sector, including many free zone employees. Some groups are exempt, including:
- Investors who own the business they work in
- Domestic workers
- Temporary contract workers
- Workers under 18
- Retirees receiving a pension who have taken a new job
New employees should subscribe within four months of receiving their work permit.
How much does it cost?
There are two categories, based on basic salary (not total salary):
| Category | Basic salary | Premium | Maximum monthly benefit |
|---|---|---|---|
| A | Up to AED 16,000 | AED 5 per month (AED 60 per year) | AED 10,000 |
| B | Above AED 16,000 | AED 10 per month (AED 120 per year) | AED 20,000 |
You can usually pay monthly, quarterly, half-yearly or yearly. Premiums are generally paid by the employee unless the employer chooses to cover them.
What does it pay?
- 60% of your average basic salary over the six months before you lost your job
- Up to the monthly cap for your category
- For a maximum of three months per claim
Example: If your average basic salary was AED 8,000, you could receive about AED 4,800 a month for up to three months.
Who can claim?
To be eligible, you generally need to:
- Have been subscribed and paid premiums for at least 12 consecutive months
- Have lost your job involuntarily
- Submit your claim within 30 days of losing your job
Claims are not accepted if you resigned, were dismissed for disciplinary reasons, provided false information, or have already started a new job.
Fines to avoid
- AED 400 for not subscribing within the deadline
- AED 200 if premiums go unpaid for more than three months, and the policy may be cancelled
Unpaid fines can cause problems later, for example when renewing or changing your work permit, so it is worth checking your status.
How to subscribe or claim
- Visit the official ILOE website (iloe.ae) or download the official ILOE app.
- Log in with your Emirates ID details.
- Choose your category and payment frequency and pay the premium.
- To claim, log in after losing your job, submit the claim form and upload the required documents.
Some exchange houses and service centres can also help with subscription.
Quick checklist
- Check that you are subscribed and your policy is active.
- Set reminders for premium payments.
- Keep your salary slips and termination documents.
- If you lose your job, claim within 30 days.
Disclaimer: This guide is for general information. Fees, rules and procedures can change, so always confirm details on the official ILOE platform or with MOHRE.