ILOE (Involuntary Loss of Employment) insurance in the UAE is mandatory for many employees working in the private sector and federal government sector. It provides short-term income support if an eligible employee loses their job involuntarily, subject to the scheme’s salary, subscription and claim rules.
For employees, understanding ILOE insurance is essential because missed subscriptions or unpaid premiums can lead to fines and cancelled cover. For employers, it is useful to explain the scheme during onboarding, especially when hiring new staff or processing employment visas.
This guide explains what ILOE insurance is, who needs to subscribe, how much it costs, what it covers, how to claim compensation and what penalties can apply.
What Is ILOE Insurance in the UAE?
In the United Arab Emirates, Involuntary Loss of Employment insurance, known as ILOE insurance, provides limited financial support for eligible Emirati nationals and expatriate resident employees who lose their jobs involuntarily. The scheme applies to eligible employees in the federal government sector and private sector, unless they fall within an exempt category.
ILOE insurance does not apply when an employee resigns, is dismissed for disciplinary reasons, submits a fraudulent claim, works for a fictitious employer or does not meet the policy conditions. It is also separate from end-of-service gratuity, unpaid salary, notice pay, visa cancellation and any other employment rights or employer obligations.
The scheme was introduced under Federal Decree-Law No. 13 of 2022. Employees who fall within the mandatory categories must subscribe by purchasing an insurance policy through an approved ILOE channel.
ILOE insurance provides a monthly cash benefit for up to three consecutive months after eligible involuntary job loss. The benefit can reach up to 60% of the employee’s average basic salary over the six months before unemployment, subject to the maximum monthly limits for the employee’s salary category.
To qualify for compensation, the employee must have been subscribed to the scheme for at least 12 consecutive months and must have paid premiums according to the selected payment schedule.
Dubai Insurance Company acts as the representative of the insurance pool. The pool may include several insurers that share the risk and responsibility of providing unemployment insurance under the ILOE scheme.
How to Subscribe to ILOE Insurance
Subscribing to ILOE insurance is a straightforward process for eligible employees in the UAE. Employees should first confirm that they fall within the mandatory categories, then choose the correct salary category, select an approved subscription channel and keep their Certificate of Insurance active.
To subscribe, employees usually need their Emirates ID, mobile number and employment details. Employees who are new to the UAE should also keep their UAE residence visa and labour details up to date, as ILOE eligibility and claims depend on legal presence and employment status.
1. Check Your Eligibility
First, confirm that you are required to subscribe to the scheme. ILOE insurance applies to eligible employees in the private sector and federal government sector, unless they fall within an exempt category.
Exempt categories include investors who own the companies they work in, domestic helpers, temporary-contract workers, juveniles under the age of 18, and retirees who receive a pension and have joined a new job.
2. Choose Your Insurance Category
ILOE insurance has two salary categories based on basic salary.
Category A applies to employees with a basic salary of AED 16,000 or below. The monthly premium is AED 5 plus VAT, and the maximum monthly benefit is AED 10,000.
Category B applies to employees with a basic salary above AED 16,000. The monthly premium is AED 10 plus VAT, and the maximum monthly benefit is AED 20,000.
3. Choose an Approved Subscription Channel
Employees can subscribe through the official ILOE portal or the ILOE mobile app. These are direct channels and are usually the simplest way to register, renew a policy, check payment status and access policy details.
Other approved subscription channels may include exchange centres, Tawjeeh and Tasheel business centres, SMS and telecom bills, kiosks, bank apps and ATM machines. Some non-direct channels may carry additional service charges.
If an employee’s details do not appear correctly during registration, they should first check their employment details with their employer. Private sector employees may also need to raise a MOHRE enquiry if the issue relates to a work permit, labour contract or registered employment record.
4. Select Your Payment Frequency
Employees can usually pay ILOE premiums monthly, quarterly, semi-annually or annually. Policy periods are available for one year or two years, and the full VAT amount is added to the first instalment or payment.
Employees should choose a payment schedule they can maintain. Missed payments can affect the policy, and unpaid premiums for more than 90 days from the due date may result in the Certificate of Insurance being cancelled.
5. Download Your Certificate of Insurance
After registration and payment, the employee should download and save their Certificate of Insurance. This certificate confirms the employee’s subscription status, salary category, policy period and insurance details.
Employees should keep a copy of the certificate because it may be needed when checking policy status, renewing the policy or preparing an ILOE claim.
6. Maintain Your Subscription
To remain eligible for compensation, employees must keep their ILOE subscription active and pay premiums according to the selected payment schedule.
An employee must usually be subscribed for at least 12 consecutive months before they can claim compensation. They must also meet the scheme’s claim conditions, including losing their job involuntarily and submitting the claim within the required timeframe.
For employers, it is useful to explain ILOE during onboarding, especially when hiring staff after business setup in Dubai, applying for employment visas or setting up HR processes. This helps employees understand whether they need to subscribe, which salary category applies and how to avoid missed payments or fines.
All Subscription Options for ILOE Insurance
Subscribing to ILOE insurance in the UAE can be done through several approved channels. Employees should use the official ILOE portal or ILOE mobile app where possible, as these are the most direct ways to register, manage payments and check policy status. Other channels may be convenient, but they can carry additional service charges.
1. ILOE Portal
Employees can subscribe, renew their policy and check their insurance status through the official ILOE portal. This is usually the simplest option because it allows employees to register, select their payment frequency, view policy details and manage their subscription online.
2. ILOE Mobile App
The ILOE mobile app gives employees another direct way to subscribe and manage their policy. Through the app, users can register, pay premiums, check their insurance status and access their Certificate of Insurance from their mobile device.
3. Exchange Centres
Employees can subscribe through approved exchange centres, including Al Ansari Exchange branches and the Al Ansari Exchange app where available. This option may suit employees who prefer to make payments in person or through an exchange provider they already use.
4. Business Centres
Employees can also subscribe through approved business service centres, including Tawjeeh and Tasheel branches. This can be useful for employees who want face-to-face support during registration or payment.
5. SMS and Telecom Bills
Some employees can subscribe through SMS or telecom billing channels. The current SMS format is to send ID followed by the employee’s Emirates ID number to 2120, for example: ID 784xxxxxxxxxxxx to 2120.
6. Self-Service Kiosks
Designated self-service kiosks can also be used to subscribe or pay ILOE premiums. Employees using kiosk payments should keep proof of payment and check that the subscription appears correctly in their ILOE account afterwards.
7. Banking Applications and ATMs
Employees may be able to subscribe through approved banking applications and ATM machines. Availability can vary by provider, so employees should check the ILOE portal if they are unsure whether a banking channel is currently supported.
8. Partner Apps and Payment Channels
Some partner channels, such as C3Pay, Botim and WHI, may also support ILOE subscription or payment services. Employees should make sure they are using an approved channel before entering payment details.
9. ILOE Call Centre
Employees who need help with subscription, payment or policy access can contact the ILOE call centre on 600599555. This is useful if an employee has trouble registering online, receiving an OTP, checking payment status or accessing their Certificate of Insurance.
After using any payment channel, employees should check that the payment appears correctly in their ILOE account.
What Does ILOE Insurance Cover?
ILOE insurance provides temporary compensation if an eligible employee loses their job involuntarily. It is designed to give short-term income support while the employee looks for new work, but it does not replace salary, end-of-service gratuity, notice pay or any other employment rights.
Scope of Coverage
- Unemployment Benefits: ILOE insurance covers involuntary job loss where the employee’s service is terminated by the employer and the claim meets the policy conditions. It does not apply when the employee resigns, is dismissed for disciplinary reasons, submits a fraudulent claim, works for a fictitious employer or has an existing abscondment complaint.
- Percentage of Salary: The monthly cash benefit can reach up to 60% of the employee’s average basic salary over the six months before unemployment. The calculation is based on basic salary, not total salary, so allowances and other benefits should not be treated as part of the ILOE calculation unless they form part of the documented basic wage.
Duration of Benefits
- Time-Limited Support: ILOE compensation is available for up to three consecutive months for each eligible claim. The benefit is intended to bridge the gap after involuntary job loss, not to provide long-term unemployment income.
- Lifetime Cap: The total claim payments cannot exceed 12 monthly benefits across the insured employee’s working life in the UAE. This applies regardless of the number of claims submitted during the employee’s service period.
Maximum Monthly Benefits Based on Salary Categories
ILOE compensation is capped according to the employee’s salary category. Category A applies to a basic salary of AED 16,000 or below, while Category B applies to a basic salary above AED 16,000. The subscription section above explains the premiums and maximum monthly benefit for each category.
Optional Additional Benefits
The standard ILOE policy provides the basic unemployment insurance benefit set by the scheme. Employees who want additional protection should check available options directly with the insurer before subscribing, as any extra benefits sit outside the core ILOE cover.
This should not be treated as a replacement for personal savings, life insurance, health insurance or employer-provided benefits. ILOE insurance only covers eligible involuntary job loss under the scheme’s rules.
Exclusions
ILOE insurance does not cover every employee or every type of job loss.
Exempt categories include investors who own the companies they work in, domestic helpers, temporary-contract workers, juveniles under the age of 18, and retirees who receive a pension and have joined a new job.
The scheme also does not cover job loss caused by resignation, disciplinary dismissal, fraud, fictitious employment, non-peaceful labour strikes or stoppages, or cases where the employee is not legally resident in the UAE at the time of the claim.
Certain exceptional events are also excluded. These include job loss linked to war, civil unrest, nuclear or pollution-related events, terrorism-related biological or chemical contamination, or direct UAE government action that causes expropriation, nationalisation, seizure or confiscation of the employer’s assets leading to insolvency.
Premium Requirements
Employees must keep their ILOE premiums up to date according to their selected payment schedule. Premiums can usually be paid monthly, quarterly, semi-annually or annually.
If an employee fails to pay a due premium for more than 90 days, the Certificate of Insurance may be cancelled. The employee may also become liable for an AED 200 fine for failing to meet regular payment obligations.
Eligibility Criteria
An employee must usually be subscribed to ILOE insurance for at least 12 consecutive months before making a claim. During that period, there must be no interruption in subscription for more than 3 months.
To qualify for compensation, the employee must also prove that the job loss was not caused by resignation or disciplinary dismissal. The claim must be submitted within 30 days from the date of termination or from the settlement of a labour complaint referred to court.
Legal Residency Requirement
The employee must be legally present in the UAE when claiming ILOE compensation. If the employee cancels their UAE residence visa, leaves the country or starts a new job during the claim process, this may affect their eligibility.
Claimants should keep clear copies of their Emirates ID, passport, visa, employment contract, termination letter and any other documents requested during the claim process.
When ILOE Coverage Ends
The insurer’s obligation ends when the insured employee reaches the maximum aggregate benefit limit or in the event of the insured employee’s death.
If a policy has ended or a certificate has been cancelled, the employee should check their status through the ILOE portal or support channels before assuming they remain eligible for a future claim.
How Do I Get an ILOE Certificate?
If you have subscribed to ILOE insurance but have not received your Certificate of Insurance, you can access it through the official ILOE portal or ILOE mobile app.
Follow these steps to view or download your certificate:
1. Go to the ILOE portal or open the ILOE mobile app.
2. Choose your employment sector.
3. Enter your Emirates ID and registered mobile number.
4. Request a one-time password, known as an OTP, to verify your identity.
5. Enter the OTP and select View Policy Details.
6. Review your policy details and download your Certificate of Insurance.
Check that your name, Emirates ID, salary category, policy period and payment details are correct. If any details are wrong, contact the ILOE call centre on 600599555 or use the support options available through the portal or mobile app.
The Certificate of Insurance is worth saving because it confirms your subscription status and may be needed when checking policy details, renewing your insurance or preparing a claim.
How Do I Claim My UAE ILOE Insurance?
If you lose your job involuntarily, you must submit your ILOE insurance claim within 30 days from the date of termination or from the settlement of a labour complaint referred to court. Claims can be submitted through the ILOE portal, ILOE mobile app, ILOE call centre on 600599555, or any other approved claim channel.
1. Check Your Eligibility
Before submitting a claim, confirm that you meet the main ILOE claim conditions.
- You must have been subscribed to the scheme for at least 12 consecutive months.
- You must have paid your premiums according to your selected payment schedule.
- Your job loss must be involuntary. You cannot claim if you resigned or were dismissed for disciplinary reasons.
- You must not have an existing abscondment complaint.
- Your claim must not involve fraud, deception or fictitious employment.
- You must be legally present in the UAE when making the claim.
- Your unemployment must not result from non-peaceful labour strikes or stoppages.
If any of these conditions are not met, the claim may be rejected.
2. Check Your Employment Details
Before starting the claim, check that your labour contract, work permit and registered employment details are accurate. This is especially important if there is a dispute over your termination date, employment status or labour record.
If there is an issue with your employment record, you may need to raise a MOHRE enquiry before completing the ILOE claim process.
3. Gather Your Claim Documents
Prepare clear and readable copies of the documents requested for your claim. These may include:
- Your Emirates ID, passport and visa
- Your employment contract
- Your termination or separation letter
- Residency cancellation documents, where applicable
- A bank statement
- A labour complaint document, if there is an active labour complaint
- An entry and exit movements report, where required
- Any other supporting documents requested during the claim process
Make sure each file is uploaded under the correct document type. For example, upload the employment contract under the employment contract field, not under passport or visa. Files should be clear, valid and readable.
4. Submit Your Claim
Log in through the ILOE claim portal or mobile app using the Emirates ID or UID used during subscription. Enter your registered mobile number, date of birth and OTP.
Then select Claim Submission, confirm your contact details and continue to the claim process.
You will need to confirm the unemployment reason and last working date. If the cancellation reason or date shown in the system is incorrect, add a remark and upload supporting documents before submitting the claim.
5. Choose Your Payment Method
If the claim is approved, compensation can usually be paid by bank transfer or through an exchange house.
If you choose bank transfer, enter your bank name, IBAN, account number and account holder name carefully. The ILOE system may not verify your IBAN before submission, so check the details before sending the claim.
6. Receive Your Benefits
If your claim is approved and the documents meet the policy requirements, compensation is paid according to the policy terms. The benefit can be up to 60% of your average basic salary, subject to the maximum monthly limit for your salary category.
Approved claims are generally paid within two weeks once the required documents have been received and accepted.
A travel report can help prove UAE presence where this document is requested. The GDRFA Dubai service for an entry and exit movement statement requires a copy of the person’s ID or valid passport, costs AED 141, and has an expected completion time of 48 hours. Treat this as a supporting document where required, not as a compulsory first step for every claim.
ILOE Insurance Penalties
Employees who fail to meet their ILOE insurance obligations may face fines, policy cancellation and work permit restrictions. The main penalties are:
1. Non-Subscription
A worker who fails to subscribe to the ILOE scheme may receive an AED 400 fine.
The original subscription deadline has now passed. For current onboarding, the key point is that private-sector employees who receive a new work permit must register within four months of the work permit being issued.
2. Late Premium Payment
A worker who fails to meet regular premium payment obligations may receive an AED 200 fine.
If the certificate is cancelled, the employee may need to subscribe again through a new insurance policy.
3. Fine Payment and Enforcement
Workers with ILOE fines should settle them promptly through approved channels. Unpaid fines may lead to administrative action, including restrictions on new work permits.
Fine amounts may also be deducted from salary or end-of-service benefits where applicable. Workers may be able to request instalment payment or apply for an exemption if they have supporting documents.
4. Work Permit Restrictions
Failure to pay ILOE fines can affect future employment administration. A worker may be denied a new work permit until outstanding ILOE dues are cleared.
Handling Disputes in the ILOE Scheme
If an employee has difficulty with an ILOE insurance claim, they should first identify whether the issue relates to the insurance policy, the claim documents, the employment record or the termination itself. Different issues may need different steps.
1. Review the Claim Details
The employee should first check the claim submission, uploaded documents, unemployment reason, last working date, bank details and contact information.
Errors in these details can delay the claim or lead to rejection. The employee should keep copies of the termination letter, employment contract, insurance certificate, claim reference number and any communication received during the claim process.
2. Check Employment and Labour Records
If the issue relates to the labour contract, work permit, termination reason or registered employment status, the employee may need to raise a MOHRE enquiry before continuing the claim.
This is especially important where the employee believes the termination reason, cancellation record or employment details shown in the system are incorrect.
3. Contact the ILOE Administrator
If the issue relates to the policy, claim status, payment or rejection reason, the employee should contact the ILOE administrator through the official support channels.
The ILOE call centre number is 600599555. Employees can also use the support options available through the ILOE portal or mobile app.
4. Submit a Formal Complaint
If the issue remains unresolved, the employee can submit a formal complaint to the insurer. The complaint should include the claim reference, insurance certificate details, termination documents and a clear explanation of the problem. Employees should keep a dated record of all claim submissions, complaint references, uploaded documents, emails, call notes and responses. This helps if the issue needs to be escalated to the insurer, MoHRE, the Central Bank of the UAE or the courts.
The insurer should respond within five working days from the complaint submission date.
5. Escalate the Insurance Complaint
If the insurer does not resolve the complaint within the required period, the employee can escalate the insurance-policy complaint to the Central Bank of the UAE.
This route is most relevant where the dispute concerns the insurer’s handling of the policy, claim assessment or payment obligations.
6. Use the Correct Labour Route for Employment Disputes
If the dispute concerns the employment relationship itself, such as wrongful termination, unpaid salary, contract cancellation or work permit records, the employee may need to handle that issue through MoHRE or the relevant employment authority.
An ILOE claim may depend on the outcome of a labour complaint or court process where the termination circumstances are disputed.
7. Consider Legal Advice Where Needed
Legal advice may be useful where the dispute involves wrongful termination, court proceedings, disputed dismissal reasons or complex employment records.
Court action should usually be treated as a last resort, as it can take time and add cost. However, UAE courts have jurisdiction over disputes arising from the implementation of the ILOE policy.
Stay Compliant with ILOE Insurance
ILOE insurance is an employee obligation, but employers should still explain it clearly during onboarding. This is especially important when hiring new staff, applying for employment visas, renewing work permits or operating across mainland and free zone structures.
For employees, the key is to keep the policy active, pay premiums on time and understand the claim rules before job loss occurs. Missed subscriptions, unpaid premiums or incorrect employment records can lead to fines, cancelled cover or claim delays.
For employers, clear guidance reduces avoidable HR questions and helps new staff understand how ILOE insurance fits alongside visas, labour contracts, payroll and wider UAE employment compliance.
Virtuzone can support businesses with PRO services, visa processing and employee onboarding guidance, helping founders put the right compliance process in place from the start.
Frequently Asked Questions
Is ILOE Insurance Mandatory in the UAE?
Yes. ILOE insurance is mandatory for eligible employees in the private sector and federal government sector, unless they fall within an exempt category.
Who Is Exempt From ILOE Insurance?
Exempt categories include investors who own the companies they work in, domestic workers, temporary-contract workers, juveniles under 18, and pension-receiving retirees who have joined a new job.
Are Free Zone Employees Required to Subscribe to ILOE Insurance?
Employees working in UAE free zones should check the rule that applies to their authority, employer and visa status. Some free zone employees may need to subscribe, while regulated free zones may issue separate employment guidance.
How Much Does ILOE Insurance Cost?
ILOE insurance costs AED 5 plus VAT per month for Category A and AED 10 plus VAT per month for Category B.
What Are the Two ILOE Insurance Categories?
Category A applies to employees with a basic salary of AED 16,000 or below. Category B applies to employees with a basic salary above AED 16,000.
Is AED 16,000 Category A or Category B?
An employee earning exactly AED 16,000 in basic salary falls under Category A, not Category B.
Which ILOE Category Applies If My Salary Is Commission-Based?
If your contract states a basic salary, use that figure to choose your ILOE category. If no basic salary is stated, confirm the correct category through the official ILOE portal before paying.
How Do I Apply for ILOE Insurance?
You can apply through the official ILOE portal, ILOE mobile app, exchange centres, business service centres, SMS, kiosks, bank apps, ATMs and approved partner channels.
How Can I Check My ILOE Insurance Coverage?
Log in to the ILOE portal or app using your Emirates ID and registered mobile number. Request an OTP, then select View Policy Details.
What Does ILOE Insurance Cover?
ILOE insurance covers eligible involuntary job loss. It does not cover resignation, disciplinary dismissal, fraud, fictitious employment or claims made while the employee is not legally present in the UAE.
How Is ILOE Compensation Calculated?
ILOE compensation is calculated at up to 60% of the employee’s average basic salary over the six months before involuntary job loss, subject to the salary category cap.
How Long Is ILOE Compensation Paid For?
ILOE compensation is paid for up to three months per claim. Total claim payments cannot exceed 12 monthly benefits across the insured employee’s working life in the UAE.
Can I Claim ILOE Insurance If I Resign?
No. ILOE insurance does not cover voluntary resignation. The job loss must be involuntary and must meet the scheme’s claim conditions.
How Do I File an ILOE Insurance Claim?
You can file a claim through the ILOE portal, ILOE mobile app or ILOE call centre on 600599555. Claims must usually be submitted within 30 days of termination or the settlement of a labour complaint referred to court.
What Documents Do I Need for an ILOE Claim?
You may need your Emirates ID, passport, visa, employment contract, termination letter, bank details and any other supporting documents requested during the claim process.
How Long Does It Take to Receive ILOE Benefits?
Approved ILOE claims are generally paid within two weeks after the required documents have been received and accepted.
What Are the Key ILOE Insurance Exclusions?
Key exclusions include resignation, disciplinary dismissal, fraud, fictitious employment, abscondment complaints, non-peaceful labour strikes and cases where the employee is not legally resident in the UAE.
What Is the Fine for Not Subscribing to ILOE Insurance?
Workers who fail to subscribe to ILOE insurance may receive an AED 400 fine. Private-sector employees with a new work permit must register within four months of the work permit being issued.
What Happens If I Do Not Pay My ILOE Premium?
Failure to pay premiums according to the selected payment schedule can result in an AED 200 fine. If payment is missed for more than 90 days, the Certificate of Insurance may be cancelled.
If My ILOE Insurance Is Cancelled, Can I Subscribe Again?
Yes. You can subscribe again through a new policy, but you may need to complete a new 12 consecutive month subscription period before claiming.
How Do I Handle an ILOE Claim Dispute?
First, check your claim details, uploaded documents and policy status. If the issue relates to labour records or termination details, raise a MOHRE enquiry. If it relates to the policy or claim handling, contact ILOE support on 600599555.
Can I Add Extra Cover to My ILOE Insurance?
The standard ILOE insurance policy provides the core unemployment benefit. Any additional protection should be checked directly with the insurer before subscribing.
