Lost your job in the UAE? Here's how to claim unemployment insurance through the ILOE scheme

Dubai: When you have family counting on you and bills to pay, few moments can be as stressful as losing your job. In the UAE, however, the federal government protects employees with its Involuntary Loss of Employment (ILOE) scheme. Here’s everything you need to know about the ILOE scheme, and how to apply. What is the Involuntary Loss of Employment scheme? The ILOE scheme is a mandatory unemployment insurance programme for individuals working in both the federal government and private sector. It was introduced by the Ministry of Human Resources and Emiratisation (MOHRE) in 2022 and implemented in 2023. Insurance Pool, managed by Dubai Insurance, administers the ILOE and handles both subscriptions and claims. By paying a monthly premium, employees become entitled to gain financial support if they lose their jobs involuntarily. ILOE payments serve as a temporary cushion, helping jobseekers stay on top of their expenses as they search for new employment. Who is eligible for ILOE? Awatif Al Khouri, senior Emirati advocate at Awatif Mohammad Shoqi Advocates & Legal Consultants, explained: “The ILOE scheme generally applies to all workers in the private sector and the federal government sector. To claim compensation, an employee must have been subscribed to the scheme for at least 12 consecutive months.” Moreover, the ILOE compensation is provided to candidates who lose their jobs because of termination, not resignation. Awatif added that certain categories of employees are excluded from the scheme, including domestic workers, temporary workers, investors working in their own establishments, workers under 18, and certain retirees who have joined a new job. How do the ILOE payouts work? Once you have enrolled in the scheme and completed paying premiums for a period of at least 12 months, you are eligible to receive compensation. UAE Federal Decree Law No. 13 of 2022 dictates the terms of the compensation. Awatif explained: “An eligible employee may receive monthly compensation equal to 60% of their average basic salary. The maximum is Dh10,000 per month for employees with a basic salary of Dh16,000 or less, and Dh20,000 per month for those earning above Dh16,000.” She added that compensation may be paid for up to three months for each claim, “while the total compensation period cannot exceed 12 months over the employee's working life in the UAE”. The scheme differentiates the above as two separate categories. Here is the breakdown, at a glance: Category A – Workers earning Dh16,000 or below Premium: D5 per month, plus VAT Compensation: Up to Dh10,000 per month (for up to three months per claim) Category B – Workers earning above Dh16,000 Premium: D10 per month, plus VAT Compensation: Up to Dh20,000 per month (for up to three months per claim) When should employees claim ILOE compensation? It’s important for employees to file a claim as soon as possible, after job loss. Awatif said: “An eligible employee should file the claim within 30 days from the end of the employment relationship. A claim may be submitted through the official ILOE website or mobile application, or through the ILOE call centre.” Employees should also make sure their insurance subscription and premium payments remain up to date, according to Awatif, “as simply being employed does not automatically qualify them for compensation”. In what situations does ILOE compensation stop? While compensation is paid out for a maximum of three months for each claim, there are certain situations in which, the payouts may stop: New job: Compensation stops if the employee finds another job – even if the three-month period has not been completed. Conditions not met: Awatif said: “Employees may also lose eligibility where the required conditions are no longer met, including where the job loss was due to resignation or disciplinary dismissal.” Reaching maximum limit: If the maximum limit is reached within a single insurance certificate period – which is three months – then payouts will stop. Reaching maximum duration: If the maximum duration of compensation – 12 months – is reached across all insurance certificates, payouts will stop. Death: The death of the insured person ends the coverage from the date of the person’s death. How to apply for ILOE Employees can subscribe to the ILOE scheme online, via the official ILOE website, through its mobile app, or via the ILOE call centre. Follow these steps to do so. Apply via the ILOE website or app The process to apply from the ILOE website or smartphone app is the same. Follow these steps: Visit the ILOE website at iloe.ae, or download ILOE via the Google Play Store or Apple App Store. On the main page, select ‘Individual’, then choose your sector – private or federal/government. Log in using your UAE PASS. Enter your registered mobile number, linked with your Emirates ID, and verify your identity by entering the one-time password (OTP) sent to your phone. Now, select which category you fall into – Category A or B – base