UAE Unemployment Insurance (ILOE) 2026: Cost, Payouts, Fines and How to Claim
AED 5 a month can pay up to 60% of your basic salary for three months if you lose your job — if you avoid the mistakes that cancel claims. Costs, worked examples, fines and the claim steps.
By the Finance Arabia editorial team5 min read
If you work in the UAE's private sector or federal government, you're required by law to subscribe to the Involuntary Loss of Employment (ILOE) scheme, the UAE's unemployment insurance. It costs as little as AED 5 a month, and if you lose your job through no fault of your own it can pay up to 60% of your basic salary for three months. Many residents don't know whether they're covered, what they'd actually receive, or which mistakes cancel a claim. This guide covers all of it, with worked examples.
ILOE at a glance
| Category A | Category B | |
|---|---|---|
| Basic salary | AED 16,000 or less | Above AED 16,000 |
| Premium | AED 5 a month (AED 60 a year) | AED 10 a month (AED 120 a year) |
| Compensation | 60% of average basic salary, up to AED 10,000 a month | 60% of average basic salary, up to AED 20,000 a month |
| How long it pays | Up to 3 months per claim (12 months maximum over your whole time working in the UAE) | |
| Minimum subscription | 12 consecutive months before losing your job | |
| Claim deadline | Within 30 days of losing your job | |
The scheme was created by Federal Decree-Law No. 13 of 2022 and has been running since January 1, 2023. By the end of 2025, about 90% of the targeted workforce had enrolled, and more than AED 350 million had been paid out to people who lost their jobs, according to the Ministry of Human Resources and Emiratisation (MoHRE).
Who must subscribe, and who is exempt
You must subscribe if you're an employee in the private sector or the federal government, whether you're an expat or a UAE national.
You're exempt if you are:
- an investor or business owner in your own establishment;
- a domestic worker;
- on a temporary contract;
- under 18;
- a retiree receiving a pension who has taken a new job.
The premium is your responsibility, not your employer's, unless your employer chooses to pay it for you.
How much would you actually get?
Compensation is 60% of your average basic salary over the six months before you lost your job, up to your category's cap. Only the basic salary counts, not housing or transport allowances. That's why the amount is often lower than people expect.
| Basic salary | 60% | Cap | Monthly payout | 3-month total |
|---|---|---|---|---|
| AED 5,000 | 3,000 | 10,000 | AED 3,000 | AED 9,000 |
| AED 12,000 | 7,200 | 10,000 | AED 7,200 | AED 21,600 |
| AED 16,000 | 9,600 | 10,000 | AED 9,600 | AED 28,800 |
| AED 25,000 | 15,000 | 20,000 | AED 15,000 | AED 45,000 |
| AED 40,000 | 24,000 | 20,000 | AED 20,000 | AED 60,000 |
The examples assume the same basic salary in each of the six months before job loss. Payments stop early if you start a new job or leave the UAE.
When you won't be paid
- You resigned. The scheme only covers involuntary job loss.
- You were dismissed for disciplinary reasons.
- You were reported as absconding.
- You had fewer than 12 consecutive months of subscription.
- Your premiums were unpaid or late.
- You filed more than 30 days after losing your job.
- The claim was fraudulent.
Fines to avoid
| Violation | Fine |
|---|---|
| Not subscribing by the deadline | AED 400 |
| Premiums unpaid for more than 3 months after the due date (the policy may also be cancelled) | AED 200 |
Unpaid fines can block a new work permit or a permit renewal, so it's worth checking your status before you change jobs. Fines are paid through MoHRE's ILOE Quick Pay service.
How to subscribe and pay
- ILOE website or app (iloe.ae): enter your Emirates ID and pick monthly, quarterly, half-yearly or annual payment.
- Other channels: bank apps, exchange houses, kiosks and Business Service Centres.
- Tip: pay annually or set up automatic monthly payment so a missed instalment doesn't cancel your cover or void a future claim.
How to claim, step by step
- Make sure your contract has ended and your work permit has been cancelled, or that you have a court ruling if there's a labour dispute.
- Within 30 days, submit the claim through the ILOE website or app (or MoHRE channels).
- Have your Emirates ID ready, along with your IBAN for the bank transfer.
- Track the claim status online. The ILOE helpline is 600 599 555.
ILOE is a safety net, not a plan
Three months at 60% of your basic salary helps, but it won't cover rent and school fees for long. Most financial planners suggest an emergency fund of 3 to 6 months of expenses. Use our budget planner to work out your monthly spending and our savings goal calculator to plan how to build that cushion. And know your end-of-service gratuity, which is paid separately from ILOE.
FAQs
Does ILOE affect my gratuity?
No. ILOE compensation is separate from your end-of-service gratuity, which your employer pays under the labour law.
I changed jobs. Do I need a new subscription?
Your subscription is linked to you, not to your employer. Keep paying without a break so your 12 consecutive months aren't reset.
Do free zone employees have to subscribe?
Free zone employees are generally covered by the scheme. Check your status on iloe.ae using your Emirates ID.
Can I get paid if I leave the UAE?
Compensation stops when you leave the country or start a new job, whichever comes first.
Information from MoHRE, the ILOE scheme and Gulf News reports, as of October 2026. Amounts, fines and procedures can change; confirm on iloe.ae or u.ae before relying on them. This article is for general information and is not legal or financial advice.
Run the numbers yourself
Prices, fees and features change often. We check our facts at the time of writing, but always confirm the latest details with the provider. This article is for information only and is not financial advice.
