Losing your job unexpectedly can be one of life’s most stressful moments. In the UAE, ILOE insurance – short for Involuntary Loss of Employment insurance – provides vital financial protection, offering workers a financial cushion while they search for new opportunities.
Whether you’re new to the country or simply updating your employment benefits, here’s everything you need to know about ILOE insurance, how to register, claim, and make the most of this essential safety net.
- Understanding ILOE insurance
- Why the UAE introduced ILOE
- ILOE insurance in the UAE
- How to enroll in ILOE
- Costs and premiums
- What does ILOE cover
- Eligibility and conditions
- How to claim ILOE benefits
- What to do after losing your job
- Common reasons ILOE claims are rejected
- Why ILOE matters
- Key takeaways
- FAQs
Understanding ILOE insurance
ILOE insurance in the UAE refers to situations where an employee loses their job through no fault of their own – typically due to redundancy, restructuring, or an employer’s business decision.
It does not apply to resignations, retirements, or dismissals resulting from serious misconduct. Instead, it’s designed for cases where termination is beyond the employee’s control, such as business closure or downsizing.
Why the UAE introduced ILOE
The primary objective of involuntary loss of employment insurance in the UAE is to provide short-term income support to individuals who lose their jobs through no fault of their own.
It serves as a social safety net, helping residents manage essential expenses while they find new employment.
More than a financial benefit, it reflects the UAE’s vision for workforce stability, ensuring that both nationals and expatriates have protection during career transitions.
ILOE insurance in the UAE
The ILOE scheme is one of the region’s most progressive employment-protection systems, designed to safeguard workers from job loss while promoting long-term labour market stability.
Scheme overview
The system was introduced under Federal Decree Law No. 13 of 2022 and became effective in January 2023. It is mandatory for all employees in both the public and private sectors, including Emiratis and expatriates. Registration is entirely digital and based on your basic salary bracket.
Who needs to enrol
All employees working in the UAE must enrol, except:
- Domestic workers
- Employees under 18 years old
- Temporary or short-term contract staff
- Retirees receiving pensions who have taken new employment
How to enrol in ILOE
Joining the scheme takes only a few minutes. Here are the steps.
- Visit the official ILOE portal or use the mobile app.
- Enter your Emirates ID and mobile number.
- Select your sector (public or private).
- Review the premium amount based on your salary bracket.
- Complete payment online through eDirham, debit card, or other accepted channels.
You’ll receive a confirmation message once you are registered, and coverage will begin immediately after payment.
Costs and premiums
Payments can be made monthly, quarterly, semi-annually, or annually. Optional “top-up” plans are also available for individuals seeking higher compensation limits.
Premiums are intentionally kept affordable to encourage full participation:
- Employees earning below AED 16,000/month: AED 5 per month
- Employees earning AED 16,000 and above: AED 10 per month
Pro tip: You can pay your ILOE premiums online or through exchange centres partnered with MoHRE
What does ILOE cover?
Eligible subscribers who lose their jobs involuntarily receive monthly cash benefits equal to 60% of their average basic salary, calculated over the last six months of employment.
The benefit is paid for a maximum of three months per claim, helping employees manage essential expenses while they search for new employment. In some cases, the scheme may also provide limited medical or family assistance depending on the coverage type.
Eligibility and conditions
To qualify for compensation, the following conditions must be met:
- Job loss must be involuntary (i.e., not due to resignation or dismissal for cause).
- The insured must have completed at least 12 consecutive months of coverage.
- All premium payments must be up to date.
- The claim must be submitted within 30 days of the date of job loss.
- The claimant must reside in the UAE during the benefit period
Failure to meet these requirements or providing inaccurate information may lead to rejection.
How to claim ILOE benefits
Filing a claim is a straightforward online process. Any errors or missing documents can delay processing, so double-check all details before submission.
- Log in to your account on the official ILOE portal.
- Submit required documents such as the Termination letter, the Last six months’ payslips, your Emirates ID and bank details
- Ensure that your information matches the Ministry of Human Resources and Emiratisation (MoHRE) records.
- Wait for assessment – successful claims are usually paid within two weeks.
What to do after losing your job
If you lost your job, follow these steps to stay covered and make the most of the support available:
- Confirm that your termination qualifies as involuntary.
- Gather all employment-related documents immediately.
- Submit your claim within the official timeframe.
- Track your claim on the ILOE website.
- Use the period of support to apply for new roles or access career counselling resources, if offered.
Common reasons ILOE claims are rejected
Even eligible employees sometimes face claim rejections. The most frequent causes include:
- Voluntary resignation
- Termination due to misconduct or fraud
- Late or missed premium payments
- Incorrect personal or employment details in the system
- Claims filed after the deadline
Ensuring accurate documentation and punctual filing helps avoid these pitfalls.
Why ILOE matters
The introduction of the Involuntary Loss of Employment scheme marks a turning point in the UAE’s labour landscape. By offering a financial bridge during unemployment, the scheme:
- Promotes economic stability and individual confidence
- Makes the UAE job market more secure and attractive to skilled workers
- Supports career resilience by easing the pressure of sudden job loss
For both employees and employers, ILOE fosters long-term trust and productivity within the workforce.
Key takeaways
The Involuntary Loss of Employment (ILOE) program provides a monthly benefit of up to 60% of your basic salary for three months after job loss.
Enrollment is simple, digital, and affordable, while eligibility depends on making consistent premium payments and providing accurate information. Timely applications are essential for successful claims.
Ultimately, ILOE provides critical financial security, ensuring stability and confidence as you take the next step in your career.
FAQs
Excluded groups include domestic workers, temporary or short-term contract staff, individuals under 18 years, and retirees who have returned to work after retirement.
You can receive up to 60% of your average basic salary from the previous six months, paid for a maximum of three months per claim.
Yes, you can – but not consecutively. You must complete at least 12 months of employment and insurance coverage between claims.
Voluntary resignation, disciplinary dismissal, missed deadlines, unpaid premiums, or incomplete documentation are the usual causes.
Applications are submitted through the official ILOE portal or the online platforms of participating insurers.
