Quick answer: the UAE’s Involuntary Loss of Employment scheme (ILOE) is mandatory for most employees in the private sector and federal government sector. Covered employees pay a small insurance premium and, if they meet the conditions, can receive temporary compensation after an involuntary job loss.
Last verified: 1 October 2026. This guide summarizes the federal ILOE scheme. It does not replace the policy terms, MOHRE rules or individualized legal advice.
Who must subscribe to ILOE?
The official ILOE portal says subscription is mandatory for employees in the UAE private sector and federal government sector, unless they fall into an excluded category.
Who is excluded?
- Investors who own the establishment they work in.
- Domestic workers.
- Workers employed on a temporary basis.
- People under 18.
- Retirees receiving a pension who have joined a new employer.
If you are unsure whether your contract falls into an excluded category, verify it through the official ILOE/MOHRE channels before assuming you do not need cover.
How much does ILOE cost?
| Category | Basic salary | Base premium | Maximum monthly compensation |
|---|---|---|---|
| A | AED 16,000 or below | AED 5 + VAT per month | Up to AED 10,000 |
| B | Above AED 16,000 | AED 10 + VAT per month | Up to AED 20,000 |
The premium can be paid using the payment frequency available through the scheme, including monthly, quarterly, semi-annual or annual options. Check your insurance certificate so you know when your next payment or renewal is due.
How much can you claim?
Eligible compensation is calculated at up to 60% of the average basic salary for the six months before the job loss, subject to the category cap. Compensation can be paid for up to three months per claim.
Example: if an eligible Category A employee had an average basic salary of AED 12,000, 60% would be AED 7,200. The final approved amount still depends on the official claim assessment and policy conditions.
The 12-month rule matters
To qualify for compensation, the insured person must normally have been subscribed for at least 12 consecutive months. A lapse or cancellation can therefore affect eligibility, even if you later buy a new policy.
What happens if you do not subscribe or stop paying?
MOHRE’s rules provide for two common penalties:
- AED 400: for failing to subscribe when required.
- AED 200: if the insured person fails to pay the required premiums for more than three months from the due date; the insurance certificate can also be cancelled.
If a policy is cancelled for non-payment, the employee needs to subscribe again by purchasing a new policy. Do not assume an old certificate remains active just because you were once enrolled.
When should you renew?
Use the expiry and payment information on your ILOE certificate as the source of truth. The official portal provides a Subscribe/Renew service. The safest routine is to check the certificate before expiry and make sure the payment method you selected has not failed.
- Open the official ILOE portal or app.
- Check your current insurance certificate and category.
- Confirm the expiry/payment status.
- Renew or pay through an approved channel before a lapse develops.
- Save the new certificate or payment confirmation.
When can you make a claim?
The scheme is for involuntary loss of employment. The official ILOE material says compensation is not intended for resignation or disciplinary termination. The claimant must also meet the other policy conditions, including the 12-month subscription requirement and compliance with premium payments.
A claim generally needs to be submitted within 30 days from the termination of the employment relationship, subject to the policy rules and any relevant labour complaint process.
ILOE is separate from end-of-service gratuity. Unemployment-insurance compensation depends on the ILOE scheme and claim conditions, while any applicable gratuity depends on employment law and your individual circumstances. See our UAE end-of-service gratuity guide for how that different entitlement is calculated.
Claim channels
- ILOE portal.
- ILOE mobile app.
- ILOE call centre: 600 599 555.
- Any additional channel officially approved by MOHRE and the insurance pool.
Documents and checks to prepare
- Your Emirates ID or unified number.
- Your insurance certificate.
- Employment/termination information requested by the claim process.
- Bank/payment details requested for settlement.
- Proof that you meet the subscription and policy conditions.
Official sources
- Official ILOE portal
- ILOE official FAQ
- MOHRE: Cabinet Resolution No. 97 of 2022
- MOHRE: Ministerial Resolution No. 604 of 2022
For more practical resident guidance, visit the UAE hub and the Save hub.
