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ILOE in the UAE: who subscribes, the cost, the fine and how to claim

This guide explains the UAE unemployment insurance scheme, usually called ILOE, from the government portal u.ae, the official ILOE site run by Dubai Insurance for the ILOE Insurance Pool, the scheme’s policy terms and Federal Decree-Law No. 13 of 2022. It is written for employees, not employers: who has to subscribe, what it costs, how to avoid the ILOE fine, and what to do in the 30 days after losing your job. Every source was opened on 22 October 2026 and is numbered at the end. The ministry’s own website did not load for our checker, so we rely on the u.ae page that MoHRE maintains.

Quick answer

ILOE (Involuntary Loss of Employment) is the UAE’s compulsory unemployment insurance for private-sector and federal government employees. It costs no more than AED 5 a month on a basic salary of AED 16,000 or less, and AED 10 above that, plus VAT. After 12 months of continuous subscription, losing your job for a reason other than resignation or disciplinary dismissal lets you claim 60% of your average basic salary for up to 3 months, capped at AED 10,000 or AED 20,000 a month. Not subscribing, or not paying, can each bring a AED 400 fine.

Facts last checked on 22 October 2026.

ILOE at a glance

Figures from the UAE government portal and the official ILOE site, checked on 22 October 2026.

ItemCategory ACategory BSource
Basic salaryAED 16,000 or lessAbove AED 16,000[1] [2]
Monthly premiumNo more than AED 5, plus VATNo more than AED 10, plus VAT[1] [2]
Compensation60% of average basic salary, up to AED 10,000 a month60% of average basic salary, up to AED 20,000 a month[1] [2]
Longest payment per claim3 consecutive months3 consecutive months[2] [5]
Most you can receive in your working life in the UAE12 monthly payments in total12 monthly payments in total[2] [5]
Fine for not subscribingAED 400AED 400[1]
Fine for not paying premiumsAED 400AED 400[1]

The u.ae page gives the premiums as maximums; the ILOE site lists AED 5 and AED 10 a month plus VAT, with the full VAT added to the first payment.

Who has to subscribe to ILOE

Subscription is compulsory for Emiratis and residents working in the private sector and the federal government sector [1] [3]. Five groups are left out: investors who own the business they work in, domestic workers, employees on temporary contracts, young people under 18, and retirees who already receive a pension and have taken a new job [1] [2]. The insurance is in the employee’s own name: you choose the plan, you pay the premiums, and the fine for not subscribing is charged to the worker [1].

How much ILOE costs and how to pay

Your category depends on your basic salary, not your total package. With a basic salary of AED 16,000 or less you are in Category A and pay AED 5 a month plus VAT; above AED 16,000 you are in Category B and pay AED 10 a month plus VAT [2]. If your contract pays commission and does not state a basic salary, you may choose either category [1] [3]. A policy runs for one or two years, and the full VAT for the policy is added to the first payment [2]. The government portal lists nine ways to subscribe and pay [1]:

  • The official ILOE website and the ILOE app, which charge no extra fee [2]
  • The ILOE contact centre on 600 599 555 [2]
  • Tasheel and Tawjeeh business service centres
  • Kiosks and ATMs that offer ILOE payments, and some banks’ mobile apps
  • Al Ansari Exchange branches or app
  • SMS through du or Etisalat: send ID, a space and your Emirates ID number to 2120 [2]
  • The BOTIM app

The ILOE fine and how to avoid it

There are two separate fines of AED 400: one for not subscribing at all, and one for not paying your premiums [1]. The ILOE FAQ adds that if a premium is more than 3 months overdue under the payment plan you chose, your policy is cancelled and a fine is due under the law; to be covered again you must take out a new policy [3]. A cancelled policy also breaks your 12 months of continuous cover, which you need before you can claim [3] [4]. To avoid both problems, choose a payment plan you can keep up with, and check your policy and statement on the ILOE portal or app with your Emirates ID and mobile number [3]. If the portal cannot find your details, private-sector employees should raise a ticket with MoHRE or call 600 590000, and federal employees should ask their HR department [2]. If an absconding complaint has been filed against you, the ILOE FAQ says you are not required to pay premiums while it stands [3].

When you can claim, and when you cannot

You can claim only if all of these are true [1] [3]:

  • You have been subscribed for at least 12 continuous months and paid every premium on your schedule
  • You lost your job for a reason other than resignation
  • You were not dismissed for disciplinary reasons under the labour law or federal HR law
  • You claim within 30 days of the end of your job, or of the settlement of a labour complaint that went to court
  • There is no absconding (work absence) complaint against you
  • The claim is not fraudulent and the employer is not fictitious
  • The job loss did not come from strikes or non-peaceful protests
  • You are legally present in the UAE when you claim

How to claim ILOE compensation

Claim within 30 days of your last working day through the ILOE portal at iloe.ae, the ILOE app or the call centre on 600 599 555 [3]. The policy terms say the claim needs proof that your job was ended by the employer [4], so keep your termination letter and your MoHRE or court papers. Once the claim is submitted, the provider reviews it and the government portal says compensation is paid within two weeks of the submission date [1]. Payments stop if you start a new job while you are receiving them [1]. You can use the compensation calculator on the ILOE site [6], or estimate 60% of your average basic salary over the last 6 months yourself and apply the monthly cap for your category [2].

ILOE is separate from your gratuity and other insurance

ILOE is paid by the insurer, not by your employer, so it sits alongside whatever your employer owes you when your job ends, such as end-of-service gratuity, notice pay and unpaid salary; our UAE labour law guide covers those. There is also a separate insurance against defaulting employers, which the government portal says covers each worker up to AED 20,000 if the company goes bankrupt or fails to pay legitimate dues [7]. Use our gratuity calculator and salary tools to check what your employer owes you, and keep the ILOE claim running in parallel.

Frequently asked questions

What is the ILOE fine and how much is it?

The ILOE fine is AED 400 for not subscribing to the unemployment insurance scheme, and a further AED 400 for not paying the premiums, according to the UAE government portal [1]. If you fall more than 3 months behind on premiums, your policy is also cancelled and you must take out a new one [3].

Can I claim ILOE if I resign?

No. You must show that you lost your job for a reason other than resignation, and you are also excluded if you were dismissed for disciplinary reasons [1] [3].

How much will I get from ILOE?

60% of your average basic salary over the 6 months before you lost your job, for up to 3 consecutive months per claim. It is capped at AED 10,000 a month in Category A and AED 20,000 a month in Category B, and at 12 monthly payments over your whole working life in the UAE [2] [5].

Do I still need ILOE if my employer pays for my insurance?

Subscription is compulsory for the employee in the private and federal government sectors [3], and the AED 400 fine for not subscribing falls on the worker [1]. Check on the ILOE portal or app that a policy exists in your name, whoever paid for it [3].

Can I claim ILOE after leaving the UAE?

No. One of the conditions is that you are present in the UAE when you claim [1], and the ILOE FAQ says you must be legally present [3]. File the claim within 30 days of your job ending, before your visa is cancelled and you leave.

Official sources

This guide summarises official UAE sources in our own words and is not legal or insurance advice. Premiums, conditions and fines can change by ministerial decision; check your policy on iloe.ae or the ILOE app, and ask MoHRE (600 590000) about your own case. The MoHRE website did not load for our checker on 22 October 2026, so we used the u.ae page it maintains. NeedMyTools is not connected to any government body or insurer.