If you work in the UAE and lose your job through no fault of your own, there is a safety net that most employees have already paid into without thinking about it: the unemployment insurance scheme, known as ILOE (Involuntary Loss of Employment). It costs only a few dirhams a month, but many people do not know whether they are covered, what it actually pays, or how to claim. This guide walks through each point using the official government pages, with worked examples.

In short: ILOE pays 60% of your insured salary for up to 3 months if you lose your job for reasons other than resignation or disciplinary dismissal. You need 12 continuous months of paid-up subscription, and you must file your claim within 30 days of your employment ending.

What ILOE Is and Where the Rules Come From

The scheme was created by Federal Decree-Law No. 13 of 2022 and is detailed in Cabinet Resolution No. 97 of 2022 and Ministerial Resolution No. 604 of 2022. Subscription became compulsory from 1 January 2023. It is not a government benefit paid from tax revenue. It is an insurance policy, run by an insurance pool led by Dubai Insurance, and the compensation comes from that policy.

Who Must Subscribe

All employees in the federal government and the private sector must have an ILOE policy. The official pages list these groups as not covered by the requirement:

  • Investors (owners of the establishment)
  • Domestic workers
  • Employees on temporary contracts
  • Workers under 18
  • Emirati retirees who receive a pension and have started a new job

What It Costs

The premium depends on your basic salary, not your total package.

CategoryBasic salaryPremiumMaximum monthly payout
Category 1AED 16,000 or lessUp to AED 5 a month (about AED 60 a year)AED 10,000
Category 2Above AED 16,000Up to AED 10 a month (about AED 120 a year)AED 20,000

If your contract has no fixed basic salary (for example, commission-based pay), you can choose either category. Premiums can be paid in instalments or in advance, depending on the plan you pick in the portal, so check the options shown at the time you subscribe or renew.

What Happens If You Do Not Subscribe

Failing to subscribe carries a fine of AED 400. Missing premium payments also carries a penalty, and the official pages show different amounts (AED 200 on one, AED 400 on another), so check the current figure on the ILOE portal before you pay. Unpaid premiums can also leave you ineligible to claim, because one of the conditions is that all premiums have been paid on schedule.

What It Pays

ILOE pays 60% of your subscription salary for up to three months, subject to the monthly caps above. In plain terms, you receive part of your basic pay for a short period while you look for a new job.

Basic AED 8,000 (Category 1)AED 4,800 a month = AED 14,400 over 3 monthsBasic AED 16,000 (Category 1)AED 9,600 a month = AED 28,800 over 3 monthsBasic AED 25,000 (Category 2)AED 15,000 a month = AED 45,000 over 3 months
Example payouts (our own illustration, using basic salary as the insured amount). Always confirm how your subscription salary is set on your policy.

Three worked examples, using basic salary as the insured amount:

  • Basic AED 8,000 (Category 1): 60% = AED 4,800 a month, so up to AED 14,400 over three months.
  • Basic AED 16,000 (Category 1): 60% = AED 9,600 a month, so up to AED 28,800. This is the most Category 1 can reach, which is just under the AED 10,000 cap.
  • Basic AED 25,000 (Category 2): 60% = AED 15,000 a month, so up to AED 45,000. The AED 20,000 cap would only apply to a basic salary above about AED 33,000.

Note that the amount is based on basic salary, not on housing or transport allowances, which is the same principle used in end-of-service gratuity calculations. The official page does not spell out how the "subscription salary" is averaged. News reports mention a six-month or twelve-month average, so look at your policy terms or ask the ILOE call centre if the exact figure matters to you. Payment stops if you start a new job while the compensation period is running.

Who Qualifies to Claim

To receive compensation, all of the following must be true:

  • You have been subscribed for at least 12 continuous months.
  • All your premiums were paid on schedule.
  • You are unemployed for a reason other than resignation, and you can show that.
  • You were not dismissed for disciplinary reasons under the labour law or HR regulations.
  • There is no work absence complaint against you.
  • The claim is not based on fraud, and the employer is not a fictitious company.
  • You did not lose the job because of a strike or non-peaceful protest.
  • You are physically in the UAE.

The claim must be filed within 30 days of the end of your employment, or of the end of a labour dispute that was referred to the authorities. Missing this window is the most common avoidable reason claims fail.

How to File a Claim, Step by Step

1. Job endsEmployer cancelswork permit➜2. Open portaliloe.ae or appclaims section➜3. Sign inEmirates ID +mobile OTP4. Check datesConfirm reasonand end date➜5. PayoutBank IBAN orexchange house➜6. SubmitTrack inMy ClaimsFile within 30 days of the job ending. Payment is due within two weeks of submitting.
The ILOE claim process in six steps (our own diagram, based on the official ILOE claims guide).
  1. Get your work permit cancelled first. The ILOE guide says you must have your work permit cancelled before you can submit a claim. Your employer does this through MOHRE.
  2. Open the ILOE claims portal from iloe.ae, or use the ILOE app, and choose to submit a claim.
  3. Sign in with your Emirates ID number and your mobile number. You will receive a one-time password (OTP) by SMS. Enter the mobile number in the format the portal shows.
  4. Select Claim Submission and proceed with your claim.
  5. Confirm the cancellation reason and date. If either is wrong, add remarks explaining why and upload supporting documents (for example, a termination letter or proof of the correct date).
  6. Choose how to be paid. You can use a bank transfer (enter your bank, IBAN, account number and the account holder name) or an exchange house, where you will need a valid Emirates ID to collect the money. The system cannot check your IBAN, so make sure it is correct before you submit.
  7. Submit the claim and then follow its progress under My Claims after logging in. Updates also go to your registered email and mobile number.

The official page says compensation should be paid within two weeks of submitting the claim. For questions, the ILOE call centre is 600 599 555 and claims emails go to claims@iloe.ae.

Common Mistakes That Cost People Their Claim

  • Waiting past 30 days. Set a reminder the day your last working day is confirmed.
  • Letting the subscription lapse. Unpaid premiums or an expired policy can make you ineligible. Renew before the policy end date.
  • Resigning first. A resignation is excluded. If you are negotiating an exit, ask how the termination will be recorded.
  • Filing before the permit is cancelled. The portal expects the cancellation to be in place.
  • A wrong IBAN. The system will not warn you, and a mistake can delay your payment.
  • Assuming ILOE replaces gratuity. It does not. ILOE is separate from your end-of-service gratuity and final settlement.

ILOE, Gratuity and Savings: How They Fit Together

ILOE is a short bridge of up to three months of reduced income. Your gratuity is the separate payment your employer owes for your years of service, and your own savings cover everything after that. Try the UAE gratuity calculator and the final settlement calculator alongside this guide to see what you would receive in total.

Sources and last review

Rules, fees, caps, eligibility conditions and claim steps in this article were checked against the sources below. Last reviewed on 19 October 2026. Rules and fines can change, so confirm the current amounts on the official portal before you act.

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This article gives general information, not legal or insurance advice. The authorities and the insurer decide each claim, and rules can change. For a decision about your own case, check the official ILOE portal or contact MOHRE or the ILOE call centre.