Who has to subscribe to ILOE?
Unemployment insurance in the UAE is mandatory for all employees registered under MOHRE (Ministry of Human Resources and Emiratisation) in the private sector, and for federal government employees. The obligation sits with the employee directly, not the employer, though many employers helped staff subscribe at launch.
If you ask what the ILOE unemployment insurance is and whether you are legally required to have it: if you receive a salary from a UAE-registered private sector employer and are on their payroll under MOHRE, the answer is yes. UAE nationals working in federal government are also covered. Emiratis in local (emirate-level) government should check with their HR department, as systems vary by emirate.
People outside the ILOE obligation include domestic workers, self-employed individuals, business owners, investors, and people on investor or dependent visas without MOHRE-registered employment. Free zone employees working for UAE-registered companies are included; the test is whether your employment is governed by UAE federal labour law.
What does ILOE cost?
The scheme divides employees into two categories by monthly salary. The figures below are sourced from the ILOE scheme portal (iloe.ae) and are subject to change by Cabinet decision; always confirm current amounts on the official portal before acting.
| Category | Monthly salary | Monthly fee | Annual fee |
|---|---|---|---|
| Category 1 | AED 16,000 or below | AED 5 | AED 60 |
| Category 2 | Above AED 16,000 | AED 10 | AED 120 |
You can subscribe through the ILOE official portal (iloe.ae), UAE PASS, certain banking apps, du and Etisalat platforms, and the TAMM app (Abu Dhabi) or Dubai Now. Payment can be monthly, quarterly, half-yearly or annually. The subscription is the employee's responsibility. A lapsed subscription at the time of termination means no benefit, regardless of years of service.
A late registration fine applies to employees who missed the original mandatory enrolment deadline. If you have not yet subscribed, register through iloe.ae now. The 3-month waiting period counts from your registration date.
What does it pay if you lose your job?
Qualifying terminations (involuntary only) trigger a monthly benefit based on your last insured salary. The scheme pays:
- 60% of your insured monthly salary
- Category 1 monthly cap: AED 10,000
- Category 2 monthly cap: AED 20,000
- Maximum payment period: 3 months per claim
Source: ILOE scheme, iloe.ae. Subject to change by Cabinet decision; confirm at time of claim.
A 3-month waiting period applies from the date of first valid subscription before you can file any claim. The scheme allows a maximum of 2 claims during your career in UAE employment, so a second redundancy can be covered but not a third.
ILOE benefit is separate from end-of-service gratuity, which is a distinct UAE labour law entitlement. The two do not offset each other; ILOE replaces part of your salary during job search, gratuity is a terminal settlement.
How do you claim, step by step?
If you are terminated and want to claim: step through the sequence below. Missing step one (the 30-day filing window) forfeits the claim for that termination event.
- File within 30 days of termination. The clock starts on your official termination date, which is usually the date your visa cancellation is initiated or your termination letter is dated, whichever is earlier under scheme rules. Log in to iloe.ae or the MOHRE app and open a new claim.
- Gather your documents. You need your Emirates ID, termination letter or proof of visa cancellation, and confirmation that your ILOE subscription was active without lapses through to the termination date.
- Submit the online claim form. Complete all fields via iloe.ae using UAE PASS login. Attach the required documents. The portal issues a reference number on submission.
- Verification period. The scheme operator checks that the termination was involuntary and that subscription was uninterrupted. Processing typically takes several working days. You may be contacted for additional information.
- Benefit payments. Approved claims result in monthly payments for the approved period (up to 3 months), paid to the bank account registered with your Emirates ID or as specified during the claim.
- Active job search. Maintaining an active job search during the benefit period is a scheme requirement. Keep records of applications, interviews and responses in case of audit.
What happens if you missed the deadline?
If you have never subscribed, or if your subscription has lapsed, no benefit applies on termination. The late registration fine is applied when you enrol after the original deadline; once paid, you subscribe and the 3-month waiting period runs from that point.
For most employees, the annual cost of ILOE is AED 60 to AED 120. Against a potential 3-month benefit at 60% of salary, the cost of staying subscribed is small. The risk of lapsing for the sake of a monthly saving rarely makes sense on the numbers alone.
For a broader picture of your insurance obligations in the UAE, see health insurance costs in Dubai, ILOE comparison and how we verify our data.
Information, not advice. InsureCompare.ae is an independent comparison site. We are not licensed by the CBUAE to advise on insurance products. ILOE figures on this page are sourced from the ILOE scheme (iloe.ae) and are subject to change by Cabinet decision; always confirm current amounts on the official portal before acting.
Related reading
- UAE unemployment insurance overview
- Health insurance costs in Dubai
- Term life insurance in the UAE
- All knowledge hub guides
- Our methodology
Frequently asked questions
What is ILOE?
ILOE stands for Involuntary Loss of Employment. It is the UAE's mandatory unemployment insurance scheme, launched in 2023, which pays a monthly income benefit to qualifying employees who are made redundant through no fault of their own.
Who must subscribe to ILOE?
All employees in the UAE private sector and federal government sector must subscribe. Domestic workers, self-employed people, investors and retirees are outside the obligation.
Does ILOE cover me if I resign?
No. ILOE only covers involuntary termination: redundancy, company closure or non-renewal of contract by the employer. Resignation, dismissal for cause, end of contract during probation and negotiated departures with a settlement are not covered.
How much will I receive if I lose my job?
60% of your last insured monthly salary, for up to 3 months. Category 1 (salary AED 16,000 or below): capped at AED 10,000 per month. Category 2 (salary above AED 16,000): capped at AED 20,000 per month. Source: ILOE scheme (iloe.ae); subject to Cabinet decision changes. Always confirm on the official portal.
How do I subscribe to ILOE?
Through iloe.ae, UAE PASS, the MOHRE app, certain banking apps, or du and Etisalat platforms. You need your Emirates ID. Payment can be monthly, quarterly, half-yearly or annually.
Is ILOE the same as end-of-service gratuity?
No. ILOE is an insurance scheme that replaces part of your salary during job search after involuntary termination. End-of-service gratuity is a separate entitlement under UAE labour law, paid by the employer at the end of employment. The two are independent of each other.