ILOE stands for Involuntary Loss of Employment insurance. The UAE government calls it the Unemployment Insurance Scheme. It pays you part of your salary for a short time if you lose your job and it was not your choice.
The scheme started in 2023 under Federal Decree-Law No. 13 of 2022. MoHRE (the Ministry of Human Resources and Emiratisation) oversees it, and an insurance pool runs it through the ILOE website and app.
Who must join
You must subscribe if you work in:
- The private sector, with a MoHRE work permit, or
- The federal government.
This applies to expats and UAE nationals.
You are exempt if you are:
- An investor who owns the company you work for
- A domestic worker (housemaid, nanny, private driver)
- On a temporary contract
- Under 18
- A retiree who receives a pension and has joined a new job
Tip: Even if you think your employer handles it, check your own status. The fine for not subscribing is charged to the worker.
How much it costs
| Category | Basic salary | Monthly premium | Maximum monthly payout |
|---|---|---|---|
| Category 1 (A) | AED 16,000 or less | No more than AED 5 | AED 10,000 |
| Category 2 (B) | More than AED 16,000 | No more than AED 10 | AED 20,000 |
VAT at 5% is added to the premium. You can choose how often to pay, and you must keep to that schedule.
Most blue-collar and mid-level workers fall in Category 1. The cost is about AED 60 a year, plus VAT.
What it pays
If you qualify, ILOE pays:
- 60% of your basic salary. The official u.ae page calls this the “subscription salary”.
- For up to 3 months per claim.
- Up to the monthly cap for your category (AED 10,000 or AED 20,000).
Example: Your basic salary is AED 3,000. You lose your job and qualify. ILOE pays 60% of AED 3,000, which is AED 1,800 a month, for up to 3 months.
Payments stop if you start a new job during that time. The insurance provider must pay within two weeks after you submit a complete claim.
Who can claim
All of these must be true:
- You subscribed for at least 12 months in a row.
- You paid all your premiums on time.
- You lost your job not by resigning.
- You were not dismissed for disciplinary reasons.
- There is no open “absence from work” complaint against you.
- The claim is not based on fraud or a fake employer.
- The job loss was not caused by a strike or a non-peaceful protest.
- You are in the UAE when you claim.
Warning: Resigning ends your right to claim for that job. If your employer asks you to “resign” when they are really letting you go, think carefully. Ask for a termination letter instead, and keep a copy.
How to claim
Submit your claim to the ILOE insurance provider within 30 days after your job ends. If you had a labour dispute with your employer, the 30 days start when the dispute is settled.
Follow the claim steps on the ILOE website or app. Keep a copy of your termination letter and every document you submit.
How to subscribe and pay
The official u.ae page lists these channels:
- ILOE website
- ILOE app (Google Play and App Store)
- ILOE contact centre
- Business service centres (Tasheel, Tawjeeh)
- Kiosks and ATMs such as MBME Pay, C3Pay and UPay
- Al Ansari Exchange branches and app
- Some bank apps
- SMS through du and Etisalat
- The Botim app
Tip: Set up automatic yearly payment if you can. A missed premium can mean a fine and a cancelled policy.
Fines
| Reason | Fine |
|---|---|
| Not subscribing | AED 400 |
| Not paying premiums | AED 200 if unpaid more than 3 months after the due date (as reported by The National in 2025) |
If you do not pay premiums, your insurance certificate can be cancelled. The official u.ae page lists the unpaid-premium fine differently, so check the current amount in the MoHRE app.
You can check ILOE fines on the MoHRE website or app. Unpaid fines can block MoHRE services, such as a new work permit. Pay or appeal them early.
Common mistakes to avoid
- Thinking HR did it for you. Many workers find a fine only when they renew their work permit. Check your status yourself in the ILOE app.
- Letting a payment lapse. If you choose monthly payments and your card expires, the premium is missed. You may then lose the 12 months you need to claim.
- Claiming too late. The 30-day window is short. Start your claim soon after your last working day.
- Resigning in a hurry. If the company is cutting jobs, a resignation can cost you your ILOE claim. Ask for the reason to be written as termination if that is the truth.
- Leaving the country. You must be in the UAE to qualify.
ILOE and your other dues
ILOE does not replace what your employer owes you. When your job ends, your employer must still pay your final salary, unused leave and gratuity within 14 days. See our gratuity guide and UAE labour law basics.
ILOE gives you a short safety net while you look for the next job. For job search help, see our get hired guides and the weekly who’s hiring list.
