UAE job loss insurance guide 2026: All you need to know about the Involuntary Loss of Employment (ILOE) scheme

Dubai: If you lose your job in the UAE, there is an insurance scheme that can help you ride the tide, while you find another suitable employment. The mandatory Involuntary Loss of Employment (ILOE) scheme offers some financial security to workers who may find themselves unemployed due to termination, by providing a temporary monthly cash compensation for up to three months.

Here is all you need to know about what the scheme is, how it helps workers and what you need to do, to become eligible for an insurance payout.

What is ILOE?

The scheme was launched in January 2023, by the Ministry of Human Resources and Emiratisation (MOHRE) in collaboration with the ILOE Insurance Pool, represented by Dubai Insurance company, which acts as the official service provider handling subscriptions, premium collection and compensation claims for the scheme.

The scheme was launched in accordance with Federal Decree-Law No. 13 of 2022 concerning unemployment insurance, as a form of social security for workers in the federal and private sectors, and ensures the availability of income for the insured person for a limited period of up to three months during unemployment.

Is subscribing to the scheme mandatory?

Yes, subscribing to the ILOE insurance scheme is mandatory for all private sector and federal government sector employees.

Who does it include?

All employees in the federal government sector and the private sector are required to subscribe to the scheme by purchasing an insurance policy that covers them in case their service ends, within the criteria established by the decree law.

The workers are registered in one of two categories:

Category 1 – Workers whose basic salary is less than Dh16,000

Category 2 – Workers whose basic salary is more than Dh16,000

Excluded categories:

The following categories of workers are not included in the scheme:

• investors (the owners of the establishment where they work)

• domestic workers

• employees with temporary contracts

• juveniles (those under the age of 18)

• Retirees who are entitled to a pension and joined a new job

What is the subscription fee?

Category 1: Dh5 per month, or Dh60 annually

Category 2: Dh10 per month, or Dh120 annually

The payments can be made on a monthly, quarterly, semi-annually and annually. The amount is not inclusive of 5% Value Added Tax (VAT), which will be added to your first instalment, if you’re paying in instalments, or to your annual amount in cases of one-time payment.

How much will the payout be?

In case you lose your job, and are eligible for the payout, you will receive 60 per cent of your basic salary for three months, unless you find another job within this period.

However, there is a cap on the maximum amount you will receive – Dh10,000 for the first category of workers and Dh20,000 for the second category.

Subscription channels

You can subscribe for the scheme through any one of the nine different channels provided by MOHRE:

• Official ILOE website – www.iloe.ae

• The ILOE smartphone application, which is available on Google Playstore and Apple AppStore.

• The official ILOE contact centre – 600 599 555.

• Business service centres – Tasheel and Tawjeeh.

• ATMs and kiosks like MBME PAY, C3PAY5 and UPAY.

• Exchange companies (Al Ansari Exchange centres).

• Mobile applications of some UAE banks, such as Emirates NBD, Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB).

• SMS to du and Etisalat.

• the BOTIM app, which is available on Google Playstore and Apple AppStore.

Six criteria you need to fulfil to be eligible for job loss compensation:

There are specific criteria laid out by the ministerial resolution, which need to be kept in mind, when subscribing for the insurance scheme.

In case of job loss, you need to fulfil the following criteria to be eligible for a payout:

• You need to be subscribed to the scheme for at least 12 consecutive months.

• Your unemployment should be for a reason other than resignation or a disciplinary action.

• You are legally a resident in the UAE.

• You are submitting your claim within 30 days of the date of termination.

• You are not reported as an absconding worker.

• You have been paying the insurance premium.

How to subscribe to the scheme

If you are using the official ILOE website, these are the steps you need to follow:

• Visit www.iloe.ae

• Select the option ‘Involuntary Loss of Employment (ILOE), by clicking on ‘Subscribe here’.

• Select which sector you fall under: Private, Federal Government, non-registered with MOHRE (in case you are a free zone employee).

• Next, register on the website using your UAE Pass or by providing your Emirates ID number, phone number and date of birth.

• If you are registered in the MOHRE system, you will then be taken to your dashboard, where your category for the scheme (Category 1 or 2) will be pre-selected.

• Choose how you wish to pay - monthly, quarterly, semi-annually, annually or for two years.

• Confirm your details.

• Make the payment through your debit or credit card.

• Once you have completed the payment, you will receive the insurance certificate as a link via SMS.

It is important to keep your insurance policy active, by not missing any payments, as non-payment can lead to penalties. If your policy is not renewed within three months of expiring, it will be cancelled, which will affect your eligibility for a payout in case of job loss.

Fines for not subscribing

Workers who fail to subscribe to the system face a AED400 fine, while those who do not meet their regular payment obligations incur a fine of AED200, according to MOHRE.

How to submit a claim

Once your work permit is cancelled, follow these steps:

• Visit www.iloe.ae.

• Choose the option ‘Submit your claim’.

• Enter your Emirates ID number and mobile number.

• Click on ‘Claim Submission’.

• Confirm your contact details and click on ‘Proceed to your claim process’. If you need to update your contact number in the system, you can call the ILOE contact centre on 600 599 555.

• Confirm that you fulfil the criteria to be eligible for the payout by clicking on ‘ok’.

• You will then see a form which shows details like the reason your work permit was cancelled and the cancellation date. If the mentioned cancellation date and reason aren’t correct, you need to add remarks and upload supporting documents.

• Then, choose your preferred channel for payment – getting the amount transferred to your bank account, or collecting it from a money exchange branch.

• Do a final review of your claim, ensuring all details are correct. Then, click on ‘Submit claim’.

Updates regarding the claim will be sent to the registered email address.