The UAE's Involuntary Loss of Employment scheme, known as ILOE, is compulsory unemployment insurance for most employees. It costs a few dirhams a month and pays part of your salary if you lose your job. MoHRE began fining workers who skipped it in late 2023. Unpaid fines can surface at a bad time, when a new work permit is refused.
The scheme rests on Federal Decree-Law 13 of 2022, and the Ministry of Human Resources and Emiratisation (MoHRE) supervises it. This guide explains who must subscribe and what the premiums cost. It also sets out the fines and the link to work permits. Finally, it covers how a claim works, because its conditions rule out resignations, disciplinary dismissals and absconding.
Who has to subscribe
Subscription is mandatory for employees in the private sector and the federal government, whether Emirati or expatriate. The obligation sits with the employee, not the employer. Each worker holds their own policy and pays their own premiums, even if an employer offers to help.
Several groups are exempt, according to the UAE Government portal. They include investors who own the company they work for, domestic workers and temporary contract workers. Juveniles under 18 and retirees who draw a pension and join a new job are also exempt from the scheme.
Quick Answer
UAE private sector and federal government employees must hold ILOE cover themselves. Company-owning investors, domestic workers, temporary contract workers, juveniles under 18 and pensioned retirees are exempt under the rules.
What the premiums cost and pay
The scheme has two categories based on basic salary, not the total salary package. Workers earning a basic salary of AED 16,000 or less pay AED 5 a month. Those earning above AED 16,000 pay AED 10 a month, which is AED 120 a year.
Compensation equals 60 per cent of the average basic salary over the six months before job loss. It is capped at AED 10,000 a month in the first category and AED 20,000 in the second. Payments last a maximum of three months for each claim.
Quick Answer
UAE ILOE premiums are AED 5 monthly up to AED 16,000 basic salary and AED 10 above. Compensation pays 60 per cent of basic salary for up to three months.
The fines and the work permit link
MoHRE fines workers AED 400 for failing to subscribe to the scheme. A separate AED 200 fine applies when premiums go unpaid for more than three months after the due date. The fines attach to the individual worker's record, not to the employer's establishment file.
In November 2023, MoHRE publicly announced that workers with unpaid fines would not receive new work permits until the fines were settled. The ministry can also deduct fines from salary or end-of-service gratuity. Instalment requests and exemption appeals are also accepted when supported by documents.
Quick Answer
MoHRE fines AED 400 for not subscribing to ILOE and AED 200 for premiums unpaid beyond three months. Unpaid fines can block a new work permit until they are cleared.
When you can and cannot claim
A claim needs at least 12 consecutive months of subscription before the job ends. It must be filed within 30 days of the employment ending, or within 30 days of a court ruling in a related labour dispute. Claims filed after that window risk being rejected.
The scheme covers involuntary job loss and nothing else. Workers who resigned, were dismissed for disciplinary reasons or absconded cannot claim. Compensation also stops once the worker starts a new job, and it requires the insured person to remain legally resident in the country.
Quick Answer
UAE ILOE claims need 12 consecutive months of cover and must be filed within 30 days of the job ending. Resignation, disciplinary dismissal and absconding all prevent a successful claim.
Checking and clearing fines before renewal
Fines can be checked on MoHRE's website or smart app using your Emirates ID details. Policies are bought and renewed on the ILOE portal or app, and through exchange houses and payment kiosks. The portal also offers a single payment covering two years.
The sensible time to check is at least a month before a visa renewal or job change. Clearing an outstanding fine then costs a few hundred dirhams and a few minutes. Discovering it when a new employer's permit application stalls costs days, and sometimes the job offer.
Quick Answer
Check ILOE fines on MoHRE's website or app with your Emirates ID before any renewal or job change. Renew your policy through the official ILOE portal, app or exchange houses.
Frequently asked questions
Is ILOE unemployment insurance mandatory in the UAE?
How much is the ILOE fine?
Can an ILOE fine stop my visa or work permit?
How much does ILOE insurance cost per month?
How much will ILOE pay if I lose my job?
Can I claim ILOE if I resigned?
How long do I have to file an ILOE claim?
Does my employer pay the ILOE premium?
How do I check if I have an ILOE fine?
Can I pay ILOE fines in instalments?
Main Takeaways
ILOE cover is compulsory for most UAE private sector and federal government employees, and the worker is personally responsible for it. Premiums are AED 5 or AED 10 a month, depending on basic salary. Missing it costs AED 400, and unpaid fines can block a new work permit. Check and clear any fine well before renewal or a job change.
Avoiding a blocked permit
ILOE costs a UAE worker as little as AED 60 a year, yet unpaid fines can cause frustrating permit delays. The problem is rarely the money itself, which is modest. It is the timing, because fines appear exactly when a permit or renewal is being processed. A two-year policy bought today removes much of that risk.
Before your next renewal, check your ILOE status on MoHRE's app, and renew the policy if it is close to lapsing. The check takes a few minutes and costs nothing. If you are changing jobs, clear any fine before the new employer files the permit. MSM handles work permit renewals and new MoHRE work permits, and can check for any outstanding fines before filing.