ILOE Insurance UAE: Eligibility, Registration, and Benefits

UPDATE: The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced an extension of the deadline for subscribing to the ILOE scheme. As of 15 June 2023, the new deadline for fines on non-subscribers is 1 October 2023, allowing additional time compared to the previous deadline of 1 July. 

Here’s a guide for everything you need to know about UAE’s Unemployment Insurance Scheme and application >>

What Is the Involuntary Loss of Employment Insurance Scheme?

The Involuntary Loss of Employment (ILOE) Insurance Scheme was introduced by the UAE Government to provide temporary financial assistance for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job.

The financial support will be given in exchange for a monthly insurance premium paid directly by the employee to a pool of insurance providers.

How Does It Work?

If you are an active member who have paid your contributions for at least 12 months, you will be entitled to claim cash benefit for up to 3 consecutive months per claim if you lost your job involuntarily.

You will need to prove that you had no influence on your job loss, meaning you did not resign or was dismissed due to gross misconduct or poor work performance.

Who Needs to Subscribe to The Scheme?

All UAE Nationals and Residents working in the private and government sectors are required to become members of the scheme, except for those belonging to the following categories:

• Investors or owners of companies they work at
• Domestic helpers
• Temporary-contract workers
• Individuals under the age of 18
• Retirees who are entitled to a pension and joined a new job.

Are Employees Working for Free Zone Registered Companies Required to Subscribe to The Insurance Scheme?

Yes. On 3 May 2023, employees of semi-government entities and companies registered in a UAE Free Zone we required to subscribe to the insurance scheme.

How Much Does the Scheme Cost to Join?

The insurance premium depends on the employee’s basic salary. At the moment, two plans are being offered:

	CATEGORY A	CATEGORY B
Eligibility	For employees whose basic salaries are equal to or below AED 16,000	For employees whose basic salaries are above AED 16,000
Monthly Benefit	60% of the average basic salary over the most recent 6 months prior to the involuntary loss of employment	60% of the average basic salary over the most recent 6 months prior to the involuntary loss of employment
Maximum Benefit	AED 10,000 per month for up to 3 consecutive months per claim	AED 20,000 per month for up to 3 consecutive months per claim
Premium	AED 5.25 per month	AED 10.50 per month
Minimum Subscription Period	12 months	12 months

Note that there is a limit on the total amount of benefits payable throughout a member’s working life, and this has been set at 12 monthly benefits, regardless of the number of valid claims submitted and settled.

What Are the Payment Options?

The UAE Government has allocated a range of convenient options to subscribe to the Insurance Scheme:

Direct Channels:

• ILOE Portal: iloe.ae
• Official ILOE App

Other Channels:

• Exchange Centers
• Tawjeeh & Tasheel Business Centers
• Inclusion in Telecom Service Bills*
• SMS Payments*
• Selected Payment Kiosks & Apps*

Insurance premiums may be paid monthly, quarterly, semi-annually, annually or in full (2 years).

What Is the Risk for Not Subscribing to The ILOE Insurance Scheme or Being Up to Date with Payments?

The UAE Ministry of Human Resources & Emiratisation (MOHRE) will issue monetary fines to employees who fail to register for the insurance scheme or are not up to date on payments for more than three months. Individuals who fail to subscribe to the insurance within the grace period will be required to pay a fine of AED 400 imposed by the Ministry of Human Resources and Emiratization, and a fine of AED 200 in case the insured fails to pay insurance premiums for more than three months.

Where Can I Find More Information?

You can find more information from www.iloe.ae or by calling the ILOE insurance pool 600 599 555