All employees living in the UAE are now subject to a new law called ILOE (Involuntary Loss of Employment). If you work in Dubai or any other emirate, this article is extremely important for you.
What is ILOE Insurance?
ILOE is an “Unemployment Insurance” scheme. Its purpose is to provide financial support from the UAE government if you lose your job for any reason (such as company closure or layoffs), while you are searching for new employment.
Some Important Things That People Living in the UAE must Know
- Is ILOE mandatory for everyone in UAE?
- How to apply for ILOE insurance online?
- What is the fine for not subscribing to ILOE?
- ILOE insurance benefits for expats
Is ILOE Mandatory for Everyone in UAE?
Job Security: Employees receive reliable support during difficult or unexpected circumstances.
Market Stability: Top professionals are encouraged to remain in the UAE, strengthening long-term workforce stability.
Financial Support: Eligible employees may receive up to 60% of their basic monthly salary in the event of job loss.
How to apply for ILOE insurance online?
This program applies to all private sector employees in the UAE as well as employees working in the federal government sector. It covers individuals employed on the mainland and those working in free zones, ensuring broad and inclusive eligibility across different employment structures.
What is the fine for not subscribing to ILOE?
Investors or business owners (who own their own companies).
Domestic workers (such as maids, drivers, etc.).
Temporary contract workers.
Juveniles (people under 18 years of age).
Retired individuals who are receiving a pension.
ILOE insurance benefits for expats
The cost of the insurance depends on your basic salary:
Category A: If the basic salary is AED 16,000 or less.
Cost: AED 5 per month (AED 60 per year).
Category B: If the basic salary is more than AED 16,000.
Cost: AED 10 per month (AED 120 per year).
Benefits of ILOE
If you have continuously paid premiums for 12 months and lose your job, then:
- You will receive 60% of your basic salary as a cash benefit.
- This benefit can be received for a maximum of 3 months.
- For Category A, the maximum limit is AED 10,000 per month.
- For Category B, the maximum limit is AED 20,000 per month.
FAQs
Q1: Is there a fine for not registering for ILOE?
Yes, if you do not register, there is a fine of AED 400. If your premium payment is more than 3 months late, an additional fine of AED 200 will apply.
Q2: Can you claim benefits if you resign?
No. “Involuntary” means that you did not resign voluntarily, but were terminated by the company.
Q3: Should new visa holders enroll immediately?
Yes, after obtaining a new visa, you have a specific period to register for the scheme.
Final Thoughts
ILOE is not just a legal requirement, but also a safeguard for your future in the UAE. Complete your registration today through the ILOE portal or designated exchange houses (such as Al Ansari) to avoid fines.
Check Your ILOE Premium
If you want to know how much insurance premium you need to pay based on your basic salary and how much you will receive in case of job loss, use our tool:
How to Use: Simply enter your monthly basic salary and click the button. This calculator will immediately show you your category and benefits.
UAE ILOE Calculator
*Max claim available for 3 months only.
