Published: 16 August 2026
Quick Answer
ILOE (Involuntary Loss of Employment) is the UAE’s mandatory unemployment insurance scheme under Federal Decree-Law No. 13 of 2022, administered through the ILOE.ae portal in coordination with the Ministry of Human Resources and Emiratisation (MOHRE) and a pool of licensed insurance companies led by Dubai Insurance Company. Almost all private sector and federal government employees must subscribe. The premium is a small monthly amount, either around AED 5 or AED 10 depending on your basic salary, plus VAT. If you lose your job involuntarily after being subscribed for at least 12 consecutive months, you can claim 60% of your average basic salary for up to 3 months, subject to a monthly cap. Skipping registration or letting payments lapse for 3 months brings fines, and you cannot get a new UAE work permit until they are paid.
Who Must Register for ILOE
ILOE registration is mandatory for employees working in:
– The UAE private sector.
– The UAE federal government sector.
It generally does not apply to:
– Investors and business owners (people who own the company that employs them).
– Domestic workers (household helpers, drivers, nannies and similar roles).
– Temporary and part-time contract workers under certain short-term arrangements.
– Workers under 18 years of age.
– Retirees who are already receiving a pension and have taken up new employment.
If you are a standard salaried employee on a UAE employment visa in the private sector or federal government, you are almost certainly required to subscribe, regardless of nationality.
The Two Subscription Categories
ILOE splits subscribers into two categories based on basic salary, not total salary:
| Category | Basic Salary | Monthly Premium (before VAT) | Maximum Monthly Payout |
|---|---|---|---|
| Category A | Up to AED 16,000 | Up to AED 5 | Up to AED 10,000 |
| Category B | Above AED 16,000 | Up to AED 10 | Up to AED 20,000 |
Premiums can be paid monthly, quarterly, half-yearly, or yearly through the ILOE.ae website or app, participating bank apps, exchange houses, and kiosks. VAT applies on top of the base premium, so the amount deducted is slightly higher than the headline AED 5 or AED 10 figure.
Example: If your basic salary is AED 10,000 per month, you fall into Category A. If you are later laid off after qualifying, you would receive 60% of AED 10,000, which is AED 6,000 per month, for up to 3 months.
Example: If your basic salary is AED 40,000 per month, you fall into Category B. 60% of AED 40,000 would be AED 24,000, but Category B payouts are capped at AED 20,000 per month, so that is the maximum you would actually receive.
How to Register for ILOE
- Go to the official ILOE.ae website or download the ILOE app.
- Register using your Emirates ID.
- Select your subscription category based on your basic salary.
- Choose a payment frequency (monthly, quarterly, half-yearly, or yearly).
- Pay through the ILOE portal, a participating bank’s app, an exchange house, or an approved kiosk.
New employees who join a company after their employer’s onboarding date must generally subscribe within 4 months of their employment start date. Missing this window can trigger the non-subscription fine and delays the start of your 12-month eligibility clock.
How to File an ILOE Claim After Job Loss
If you are involuntarily unemployed, meaning the job ended for reasons other than resignation or termination for disciplinary reasons, you can file a claim as follows:
- Check eligibility. You must have been subscribed to ILOE for at least 12 consecutive months before the job loss, and your premiums must be up to date.
- File within the deadline. Submit your claim through the ILOE.ae portal or app within 30 days of the end of your employment relationship or the resolution of any related labour dispute.
- Provide supporting documents, typically your Emirates ID, details of your employment termination, and your MOHRE/labour file information.
- Wait for review. The insurance provider, Dubai Insurance Company, reviews the claim.
- Receive payment. Once approved, the first payment is typically issued within about 2 weeks. Since mid-2024, ILOE compensation can also be collected in cash at Al Ansari Exchange branches across the UAE, in addition to standard bank transfer.
How Much You Get and For How Long
Approved claimants receive 60% of their average basic salary, calculated over recent months of subscription, paid monthly for a maximum of 3 months per claim, subject to the AED 10,000 (Category A) or AED 20,000 (Category B) monthly cap described above.
If your ILOE policy lapses due to non-payment and is later cancelled, re-subscribing means you must wait through another full 12 consecutive months before you become eligible for compensation again. There is no shortcut back to eligibility after a lapse.
Fines for Not Registering or Not Paying
ILOE non-compliance carries two separate fines:
- Failure to subscribe: a fine of AED 400.
- Failure to pay premiums for 3 consecutive months: a fine of AED 200.
Importantly, unpaid ILOE fines can block you from obtaining or renewing a UAE work permit until they are settled. This makes ILOE compliance a practical requirement for staying employable in the UAE, not just a technical insurance formality.
Employer Role
Under ILOE, employees subscribe and pay the premium themselves. Employers do not carry a direct financial obligation to pay ILOE premiums on an employee’s behalf, but employers are expected to inform their staff of the registration requirement as part of standard onboarding and compliance.
What This Means in Practice
- Check your category based on your basic salary (not gross salary) and confirm you are subscribed at the correct AED 5 or AED 10 tier.
- Keep your 12-month clock running. A lapsed policy resets your eligibility timeline entirely.
- File within 30 days if you lose your job involuntarily. Missing this window can cost you the claim.
- Settle any fines immediately if you missed registration or a payment. Outstanding ILOE fines can hold up a new work permit.
- Resignation and disciplinary termination are not covered. ILOE only pays out for involuntary loss of employment.
Frequently Asked Questions
Is ILOE mandatory for all UAE employees?
It is mandatory for most private sector and federal government employees. Investors/business owners, domestic workers, temporary/part-time contract workers under certain arrangements, workers under 18, and pensioned retirees taking new jobs are generally excluded.
How much does ILOE cost per month?
Up to AED 5 per month for Category A (basic salary up to AED 16,000) or up to AED 10 per month for Category B (basic salary above AED 16,000), plus VAT.
How much compensation can I receive if I lose my job?
60% of your average basic salary, for up to 3 months, capped at AED 10,000 per month for Category A or AED 20,000 per month for Category B.
Does ILOE cover resignation?
No. ILOE only covers involuntary loss of employment. Resigning or being terminated for disciplinary reasons under UAE labour law does not qualify for a payout.
How soon after losing my job must I file a claim?
Within 30 days of the end of your employment relationship or the resolution of any related labour dispute.
What happens if I do not register for ILOE?
You face a fine of AED 400 for failing to subscribe, and you will not be able to obtain or renew a work permit until it is paid.
What happens if I stop paying my ILOE premium?
Missing 3 consecutive months of payment triggers a fine of AED 200. If your policy lapses and is cancelled, you must re-subscribe and complete another 12 consecutive months before you are eligible for compensation again.
How long does it take to receive an ILOE payout after a claim is approved?
Typically around 2 weeks for the first payment, which can be received by bank transfer or in cash at Al Ansari Exchange branches.
Do employers have to pay ILOE premiums for their staff?
No. Employees pay their own ILOE premium. Employers are expected to inform staff of the requirement but carry no direct payment obligation under the scheme.
How do I register or check my ILOE status?
Through the official ILOE.ae website or app, using your Emirates ID, or through participating bank apps, exchange houses, and kiosks.
Related Reading
- UAE VAT Statute of Limitations 2026: When Can (and Cannot) the FTA Audit or Assess Your Business
- UAE Wage Protection System 2026: MOHRE Resolution 340
- MOHRE Labour Complaint UAE 2026
- UAE Work Permit Categories 2026: MOHRE Guide
- UAE Employment Visa Salary Requirements 2026
- UAE Labour Card Download 2026
Need Help With Your ILOE Registration or Claim?
If you are not sure whether you are registered for ILOE, which category you fall under, or how to file a claim after losing your job, Yalah Dubai can guide you through the process. Reach out on WhatsApp: +971 52 580 2100.
This article is for general information and does not replace official guidance from MOHRE or the ILOE scheme administrator. Verify your specific subscription status and entitlement directly through the official ILOE.ae portal.