The UAE Employment Insurance scheme became mandatory for all workers on January 1, 2023, providing financial protection if you lose your job unexpectedly. This essential program offers up to 60% of your last drawn salary for a maximum of three months when your employer terminates your services.
The UAE unemployment insurance scheme covers both Emiratis and expatriates working in private and federal sectors. The subscription fees are quite affordable—only for employees with a basic salary of AED 16,000 or less, and AED 10 monthly for those earning higher salaries. For eligible claims, compensation can reach up to AED 10,000 monthly for the first category and AED 20,000 for the second category.
If you're working in the UAE, understanding this job loss insurance is crucial. This guide explains everything you need to know about the scheme—including eligibility requirements, registration steps, and how to claim benefits after losing your job. You'll also learn about important deadlines and potential penalties to keep your coverage active and avoid unwanted fines.
What is UAE Employment Insurance and Who Needs It?
UAE's serves as a crucial financial safety net for workers who lose their jobs unexpectedly. Established under Federal Decree Law No. 13 of 2022, this program offers temporary financial support when you're terminated by your employer.Involuntary Loss of Employment (ILOE) insurance scheme
The scheme works as a form of social security for employees facing job loss. It also aims to strengthen the competitiveness of Emiratis in the job market while attracting and retaining international talent in the UAE.
Who must subscribe?
Subscription is in both the private and federal government sectors. This includes:
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UAE nationals (Emiratis)
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Expatriate residents
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Employees across mainland UAE and free zones
Who is exempt?
Not everyone needs to enroll in the scheme. These categories are exempt:
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Investors and business owners who manage their own businesses
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Domestic workers
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Temporary or part-time employees
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Individuals under 18 years of age
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Retirees who receive pensions and have joined new employers
Benefits and coverage details
If you qualify, you'll receive as compensation for a limited time. The coverage lasts for a maximum of three months for each claim.
The compensation amount depends on your salary level:
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If you earn less than AED 16,000: you can receive up to AED 10,000 monthly
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If you earn more than AED 16,000: you can receive up to AED 20,000 monthly
Eligibility requirements
To qualify for benefits, you must meet these conditions:
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Have paid into the scheme for at least 12 consecutive months
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Prove that you lost your job due to termination, not resignation
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Not be dismissed for disciplinary reasons
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Submit your claim within 30 days after your employment ends
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Be legally present in the UAE
The ILOE insurance provides a safety net during periods of unemployment while helping the UAE maintain a competitive workforce on the global stage.
How to Register for UAE Unemployment Insurance
Registering for the is quite simple with several options available. The steps vary slightly based on which registration method you choose.UAE unemployment insurance scheme
Using the ILOE Portal for Registration
The easiest way to register is through the ILOE website or mobile app:
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Visit the or download the ILOE mobile appILOE portal
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Select "Individual" and then "Private" sector
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Sign in with your Emirates ID and mobile number
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Enter the OTP sent to your phone
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Check your personal details automatically imported from your Emirates ID
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Select your preferred policy duration and payment frequency
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Pay using your credit/debit card
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Get your Certificate of Insurance (COI) by email
Other Ways to Register
If you prefer not to use the ILOE portal, you can sign up through:
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Exchange centers like Al Ansari Exchange
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Business service centers (Tawjeeh and Tasheel)
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Kiosks and ATMs
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Bank applications
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SMS and telecommunication bills (DU and Etisalat)
Keep in mind that these alternative channels might charge extra service fees.
Subscription Fees and Payment Options
Your monthly subscription cost depends on your salary:
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AED 5 monthly if your basic salary is AED 16,000 or less
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AED 10 monthly if your basic salary exceeds AED 16,000
You can choose to pay:
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Monthly
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Quarterly
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Semi-annually
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Annually
Documents Required
For any registration method, you'll need:
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Valid Emirates ID
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Active UAE mobile number
After you complete your registration, you'll receive an insurance certificate confirming your enrollment. This document proves you're covered under the scheme and have met your legal obligation as a UAE employee.
Remember that subscription became mandatory on January 1, 2023, so register as soon as possible to avoid penalties and ensure you're protected if you lose your job.
How to Claim Benefits and Avoid Penalties
If you lose your job in the UAE, claiming your employment benefits requires you to follow specific steps and meet certain conditions. Understanding this process helps you avoid claim rejections and unwanted penalties.
To qualify for ILOE compensation, you must have paid premiums for at least 12 consecutive months. You must also submit your claim within 30 days of your termination date[191]. When approved, the system provides eligible employees with up to 60% of their average basic salary calculated from the six months before job loss.
Steps to file your claim
When making your claim, follow these important steps:
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Make sure your work permit has been canceled by your employer first
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Visit the ILOE portal (), use the ILOE mobile app, or call 600599555 www.iloe.ae
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Check that your termination reason is correctly stated as "termination" and not "resignation"
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If any information is incorrect, add explanatory notes and upload supporting documents
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Provide your valid IBAN details (double-check for accuracy)
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Upload required documents including your Emirates ID copy, cancelation documents, and employment contract
Your claim will be processed within two weeks after submission. If approved, you'll receive compensation for up to three consecutive months or until you find new employment, whichever comes first.
Reasons for claim rejection
Your claim will be rejected if you:
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Resigned voluntarily
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Were dismissed for disciplinary reasons
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Submitted fraudulent information
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Left the UAE during the claim period
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Started a new job
Penalties for non-compliance
Workers who failed to subscribe to the scheme after the June 2023 deadline. Those who miss premium payments for more than three months will be fined AED 200 and have their insurance certificate canceled. Unpaid fines may be deducted from your wages or end-of-service benefits.
These penalties can prevent you from obtaining new work permits, which highlights why you must maintain compliance with this mandatory insurance scheme.
Conclusion
The UAE Employment Insurance scheme offers vital when you face unexpected job loss. This guide has shown how the program provides compensation up to 60% of your basic salary for three months, with affordable monthly premiums of just AED 5 or AED 10 based on your salary bracket. We've also explained the simple registration options through the ILOE portal, banking apps, and service centers.financial protection
Keeping your subscription active is necessary for both legal compliance and your financial security. Job loss can happen to anyone, and this safety net helps you avoid immediate financial strain while looking for new employment. Failing to comply with the scheme leads to significant penalties - from AED 400 fines to problems getting new work permits.
The employment insurance scheme is an essential part of financial planning for both expatriates and UAE nationals working in the Emirates. Before making insurance decisions, you should , which helps manage your overall insurance needs alongside employment coverage.
To get the most from this scheme, make sure you understand the eligibility criteria, pay premiums on time, and know the claim process. Since claims require specific documents and must be filed within 30 days of termination, knowing these steps in advance helps you access benefits quickly when needed.
This insurance system highlights the UAE's dedication to worker protection while strengthening its position as an attractive destination for global talent and providing peace of mind for everyone contributing to its economy.
