ILOE
ILOE Unemployment Insurance: What Employers Need to Check
ILOE is the employee's obligation, not the company's. But the fines land on your staff, and unpaid ILOE fines tend to surface at the worst moment: when someone is leaving or changing jobs.
- New hires told about ILOE on day one
- Category matched to the basic salary
- Status checked before cancellation
- Exempt staff identified correctly
Dubai PRO, payroll and tax support for UAE companies, handled by one team.
Last reviewed against current MOHRE, ICP and GDRFA guidance.
Quick Answer
The UAE's Involuntary Loss of Employment (ILOE) scheme requires employees in the federal government and private sector to buy unemployment insurance. Employees with a basic salary up to AED 16,000 pay no more than AED 5 a month; above that, no more than AED 10 a month. Not subscribing and not paying premiums each carry an AED 400 fine. After 12 months' subscription, an eligible worker who loses their job can claim 60% of salary for up to three months, capped at AED 10,000 or AED 20,000 a month.
Who Has to Subscribe
u.ae is direct about it: all employees in the federal government and private sector must participate, and the worker pays the premium. The scheme page sets out the rules.
Some groups are excluded, and it is worth knowing which, so you do not chase someone who does not need it.
- Private and federal government employees: must subscribe
- Excluded: investors who own the business
- Excluded: domestic workers
- Excluded: employees on temporary contracts
- Excluded: under-18s, and some retired Emiratis
The Two Categories
The category follows the basic salary, not the total package. That matters in the UAE, where basic is often a fraction of gross pay.
Workers on commission without a defined basic salary may choose either category.
- First category: basic salary up to AED 16,000
- Premium no more than AED 5 a month
- Second category: basic salary above AED 16,000
- Premium no more than AED 10 a month
- Commission-only workers choose either
What a Claim Pays
The benefit is modest but real. It pays 60% of the subscription salary for up to three months, within the category cap.
The conditions are strict. Resignation and dismissal for disciplinary reasons do not qualify, and the claim has to be filed within 30 days.
- At least 12 continuous months subscribed
- All premiums paid
- Not a resignation or disciplinary dismissal
- Claim filed within 30 days
- Caps: AED 10,000 or AED 20,000 a month
Where the Employer Comes In
The fines are the employee's, but the employer is in the best position to prevent them. A short note at hiring and a check at exit save most of the trouble.
Some employers pay the premium for staff as a benefit. That is a choice, not a requirement.
- Tell new hires to subscribe in their first weeks
- Use the basic salary from the contract for the category
- Check status before a visa cancellation
- Decide whether the company pays it as a benefit
How Exiloz Helps
As part of payroll and onboarding we flag ILOE for each new hire, record the category against the basic salary, and check status when someone leaves.
- ILOE flagged at onboarding
- Category recorded against basic salary
- Status checked at exit
- Exempt staff identified
Related Exiloz Services & Guides
Is ILOE mandatory in the UAE?
Yes, for employees in the federal government and private sector, apart from excluded groups such as business owners, domestic workers, temporary-contract staff and under-18s.
Who pays ILOE, the employer or the employee?
The employee. u.ae states that the worker is required to pay the premium. Employers may choose to pay it as a benefit.
How much is ILOE?
No more than AED 5 a month for a basic salary up to AED 16,000, and no more than AED 10 a month above that.
What is the fine for not subscribing?
AED 400. There is a separate AED 400 fine for not paying premiums.
How much does ILOE pay out?
60% of the subscription salary for up to three months, capped at AED 10,000 a month in the first category and AED 20,000 in the second.
Can an employee claim after resigning?
No. Resignation and disciplinary dismissal do not qualify.
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Check Your Team's ILOE Status
We can review your staff list at the next payroll and flag anyone at risk of a fine.
