UAE unemployment insurance (ILOE): what employees need to know

General information, current as of June 2026 — figures and rules can change, so always confirm with MOHRE / iloe.ae. Sources are listed at the foot of this article.

What ILOE is

Involuntary Loss of Employment (ILOE) insurance is a UAE government-backed scheme that pays a temporary benefit if you lose your job through no fault of your own. It is mandatory for most employees in the private sector and federal government, including most free-zone employees. DIFC and ADGM employees, and excluded categories (e.g. investors, domestic workers, under-18s), are treated differently.

What it pays

• Up to 60% of your basic salary for up to three months per claim.
• Monthly payouts are capped (reported as up to AED 10,000 for one category and AED 20,000 for the higher category).
• To be eligible you generally must have subscribed for at least 12 consecutive months and file your claim within 30 days of losing your job.

The cost and the fines

• Premiums are low — reported as around AED 5 or AED 10 per month depending on your salary bracket.
• Not subscribing has carried a fine (reported around AED 400), and letting it lapse can carry a further fine and cancellation.
• Unpaid fines may be deducted via the Wage Protection System or from your end-of-service gratuity, and can affect work-permit transactions.

What to do

• Check whether you're enrolled and your premiums are paid (via iloe.ae).
• If you're laid off, file within 30 days — don't miss the window.
• Unsure if you qualify or how to claim? A quick word with a labour lawyer can save you the benefit.

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