ILOE Insurance UAE 2026: Premiums, Payout & How to Claim

Quick Summary: ILOE insurance in the UAE

• What it is: ILOE (Involuntary Loss of Employment) is the UAE’s mandatory unemployment insurance – a small monthly premium that pays you a cash benefit if you lose your job through no fault of your own. It was introduced under Federal Decree-Law No. 13 of 2022.
• Who must join: almost every employee in the federal government and private sector, Emirati and expat alike. Investors/owners, domestic workers, temporary-contract staff, under-18s and pensioned Emirati retirees in a new job are exempt.
• What it costs: Category A (basic salary AED 16,000 or below) is AED 5/month (AED 60/year); Category B (basic salary above AED 16,000) is AED 10/month (AED 120/year). Add 5% VAT.
• What you get: 60% of your average basic salary from the last six months, for up to 3 months per claim – capped at AED 10,000/month (Category A) or AED 20,000/month (Category B).
• To claim: be subscribed for at least 12 straight months, have lost the job involuntarily, and file your claim within 30 days of leaving.
• If you don’t subscribe: a AED 400 fine, plus a penalty for unpaid premiums – collected through the WPS or your end-of-service, and it can block your next work permit.

If you work in the UAE, ILOE is one of those three-letter schemes that quietly became your responsibility – and most people only look it up when a friend gets laid off or a fine appears. The good news is that it is cheap, quick to set up, and genuinely useful. The catch is that the protection only works if you subscribe before you need it and keep paying on time.

This guide explains what ILOE is, exactly what it costs, how much it pays out, who can claim, and how to subscribe and file a claim – using the current figures published on the official ILOE portal and the UAE Government portal. It has been reviewed by Jashvantkumar Prajapati, who has structured UAE hiring and workforce compliance for over two decades.

Employees treat ILOE as optional until a fine shows up on a work-permit renewal. For the cost of a coffee a month it is worth having in place from day one – and for employers, a quick reminder during onboarding saves your staff that penalty and keeps your file clean.

— Jashvantkumar Prajapati, Business Structuring Specialist (CSP Licensed #909402), Avyanco Group (reviewer)

What ILOE is and who has to subscribe

ILOE stands for Involuntary Loss of Employment insurance. It is a federal scheme that pays a short-term cash benefit if you lose your job for reasons outside your control – a redundancy or a role being cut, for example – rather than because you resigned or were dismissed for misconduct. It was created by Federal Decree-Law No. 13 of 2022, and MOHRE began enforcing fines for non-compliance from 1 October 2023.

Subscription is mandatory for almost all employees in the federal government and the private sector, whether you are Emirati or an expatriate resident. Five groups are exempt:

• Investors and owners who work in their own business;
• Domestic workers;
• Employees on temporary contracts;
• Juveniles under the age of 18;
• Retired Emiratis who draw a pension and have taken a new job.

What ILOE costs: the two categories

Your premium depends only on your basic salary – the basic figure on your MOHRE contract, not your total package with allowances. There are two categories (the ILOE portal also calls them Category 1 and Category 2):

A 5% VAT is added on top, and on the ILOE portal the full year’s VAT is charged with your first instalment. You can pay monthly, or in one go for the year (or several years) if you would rather not think about it again. Either way the cost is small – the reason to act is not the price, it is making sure the cover is live before you ever need it.

How much ILOE pays you

If you are laid off and you qualify, ILOE pays 60% of your average basic salary – averaged over your last six months of work – for a maximum of three monthly payments per claim. The payout is capped by your category:

Estimate your ILOE premium and payout

Enter your basic salary below to see your category, your monthly premium, and roughly how much you would receive if you were laid off. Prefer a full-screen version? Open the ILOE calculator tool.

One lifetime limit to know: across your whole working life in the UAE, total ILOE payouts cannot exceed the equivalent of 12 monthly benefits, no matter how many separate claims you make. Payments also stop the moment you find a new job or leave the country.

Who can claim – and who can’t

To receive a payout you need to meet every one of these conditions:

• At least 12 consecutive months subscribed to ILOE, with premiums paid on time.
• Your job loss was involuntary – not a resignation, and not a dismissal for a disciplinary reason.
• You file the claim within 30 days of your employment ending (or from the resolution of a related labour dispute).
• You are still present in the UAE and have not yet started a new job.

Claims tied to fraud, a fictitious employer, or unlawful strikes are refused. And if your job loss was a resignation or a misconduct dismissal, ILOE will not pay – the scheme only covers losing work through no fault of your own.

How to subscribe to ILOE

Subscribing takes a few minutes and you do it yourself – it is tied to your Emirates ID, not to your employer. The cheapest route is the official ILOE portal or app; other channels may add a small service charge.

How to make an ILOE claim

If you are laid off, move quickly – you only have 30 days. Submit the claim through the ILOE portal or app (or the same channels above) with your Emirates ID, and the insurer verifies your employment end with MOHRE. Once approved, the benefit is paid to your bank account, normally within about two weeks, and continues for up to three months or until you start a new job – whichever comes first.

What happens if you don’t subscribe

ILOE is not optional, and MOHRE enforces it. If you do not subscribe, you face a AED 400 fine. There is also a penalty for letting your premiums lapse: MOHRE has stated this as AED 200, while the UAE Government portal summarises it as AED 400 – either way it is charged, and a lapse of more than three months also cancels your cover. Unpaid fines are collected through the Wage Protection System (WPS) or deducted from your end-of-service benefits, and an outstanding amount can hold up your next work permit until it is cleared.

Frequently asked questions

What is ILOE insurance in the UAE?

ILOE stands for Involuntary Loss of Employment insurance – the UAE’s mandatory unemployment insurance scheme, introduced under Federal Decree-Law No. 13 of 2022. For a small monthly premium it pays you a cash benefit if you lose your job through no fault of your own, such as redundancy. It does not cover resignation or dismissal for misconduct. The scheme is run through the official ILOE portal (iloe.ae) and regulated alongside MOHRE.

Is ILOE mandatory, and who has to subscribe?

Yes. Subscription is compulsory for almost all employees in the federal government and private sectors, both Emiratis and expatriate residents. Five groups are exempt: investors or owners working in their own business, domestic workers, employees on temporary contracts, juveniles under 18, and pensioned Emirati retirees who have taken a new job. MOHRE began fining non-compliant workers from 1 October 2023.

How much does ILOE cost per month?

It depends on your basic salary. If your basic salary is AED 16,000 or below (Category A) the premium is AED 5 a month, or AED 60 a year. If it is above AED 16,000 (Category B) it is AED 10 a month, or AED 120 a year. A 5% VAT is added on top, and the full year’s VAT is charged with your first instalment. You can pay monthly or in advance for the year.

How much does ILOE pay if I lose my job?

ILOE pays 60% of your average basic salary over your last six months of work, for up to three monthly payments per claim. The monthly benefit is capped at AED 10,000 for Category A and AED 20,000 for Category B. For example, a basic salary of AED 30,000 gives 60% = AED 18,000 a month for up to three months. Across your working life in the UAE, total payouts cannot exceed 12 monthly benefits.

Who is not eligible for ILOE?

You cannot claim if you resigned or were dismissed for a disciplinary reason – the scheme only covers involuntary job loss. You also need at least 12 consecutive months of paid subscription before a claim, and you must file within 30 days of leaving while still in the UAE and not yet in a new job. Investors, domestic workers, temporary-contract staff, under-18s and pensioned Emirati retirees in new jobs are exempt from the scheme entirely.

How long must I be subscribed before I can claim?

At least 12 consecutive months, with your premiums paid on time. If you let the policy lapse for more than three months it is cancelled, and that 12-month clock starts again from zero – which is why paying on schedule matters as much as subscribing in the first place.

What is the fine for not subscribing to ILOE?

Failing to subscribe carries a AED 400 fine. There is a further penalty for unpaid premiums – MOHRE states this as AED 200, while the UAE Government portal summarises it as AED 400. Unpaid amounts are recovered through the Wage Protection System or from your end-of-service benefits, and can delay a new work permit until they are settled.

Can HenryClub help with ILOE?

For individuals, subscribing is quick and you do it yourself on iloe.ae – we will always point you to the official channel. Where we help is employers: we build ILOE, WPS payroll and the Tawjeeh orientation into your staff onboarding so your team stays covered and your MOHRE compliance file stays clean. If you are hiring or setting up a company, talk to an adviser.

Sources and official references

Related guides

• ILOE premium & payout calculator
• WPS payroll compliance in the UAE
• Tasheel & Tawjeeh explained
• UAE work / employment visa
• Business operations overview
• Business setup cost calculator
• Talk to an adviser

This guide is general information from HenryClub, an independent advisory – not a government service and not legal or financial advice. ILOE is run through the official portal at iloe.ae under MOHRE’s framework, and premiums, payouts and fines are set by the scheme and may change. Confirm the current figures and subscribe at iloe.ae before acting.