DUBAI: The UAE’s Involuntary Loss of Employment (ILOE) insurance scheme is a mandatory safety net for employees, ensuring financial support in case of unexpected job loss.
Launched in 2023, the scheme provides compensation for up to three months, helping workers transition to new opportunities without immediate financial strain.
Here’s everything you need to know about subscribing, claiming benefits, and avoiding penalties.
Who needs to subscribe?
All employees in the UAE, including citizens and residents working in federal and private sectors, must subscribe to the ILOE insurance scheme.
However, the following individuals are exempt:
- Investors (owners of companies)
- Domestic workers
- Temporary contract workers
- Individuals under 18 years of age
- Retirees receiving pensions and re-employed individuals
Subscription process
Employees must enroll in the scheme through one of the following platforms:
- Official ILOE Portal
- Insurance Pool Call Center: 600 599 555
- Bank ATMs & Kiosks
- Money Exchange Centers
- Business Service Centers
- Mobile Apps (ILOE, Dubai Insurance, etc.)
- SMS Links from Authorities
Cost of ILOE Insurance
The insurance premium depends on the employee’s basic salary:
- Dh5 per month for employees earning Dh16,000 or less
- Dh10 per month for employees earning more than Dh16,000
Payments can be made monthly, quarterly, semi-annually, or annually. Failure to subscribe or renew can result in a fine of Dh400.
Benefits and compensation
Subscribers who lose their jobs (for reasons other than misconduct or resignation) can claim 60 percent of their basic salary for up to three months. The compensation is capped at:
- Dh10,000 per month for lower-income employees
- Dh20,000 per month for higher-income employees
How to claim ILOE benefits
To file a claim, follow these steps:
Ensure Eligibility: You must have paid the insurance for at least 12 consecutive months before filing a claim.
Submit a Claim: Apply within 30 days of job loss via:
- ILOE’s official portal
- Insurance pool call center
- Official mobile apps
Await Processing: Claims are typically processed within two weeks.
Receive Compensation: The payout is transferred to the insured’s account for a maximum of three months.
Renewing ILOE Insurance
Renewing your ILOE insurance is crucial to maintaining continuous coverage. Failure to renew within the deadline incurs a fine of Dh200, which can accumulate and lead to penalties affecting visa renewals or government transactions.
Consequences of non-compliance
Employees who fail to subscribe, renew, or settle fines may face:
- Accumulating penalties
- Blocked government services (such as visa renewals)
- Legal consequences if fines remain unpaid