Who is exempt from mandatory ILOE insurance in the UAE?

Exemptions include business owners/investors who own their enterprise, domestic helpers, temporary contract workers, juveniles under 18 years of age, and retirees receiving a pension who have joined a new employer.

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MoHRE ILOE Portal Verified 2026

UAE ILOE Unemployment Insurance Calculator

Official calculation engine for mandatory Involuntary Loss of Employment (ILOE) policy premiums, payout caps, and non-subscription penalty rules.

Legislative Framework of ILOE Insurance in the UAE

Enacted under Federal Decree-Law No. 13 of 2022 and implemented through Ministerial Decision No. 604 of 2022, the Involuntary Loss of Employment (ILOE) scheme is a mandatory social safety net for all federal government and private sector workers across the United Arab Emirates. It operates alongside your statutory End-of-Service Gratuity Entitlements under Article 51 of the UAE Labor Law.

The scheme provides financial compensation for up to 3 consecutive months if an employee loses their job due to involuntary termination (excluding resignation or disciplinary dismissal under Article 120/44). To maintain compliance, every worker must enroll in the insurance pool via the official ILOE portal or Exchange Houses.

Enter Monthly Basic Salary

Basic Monthly Salary: AED 12,000

Category 1 (Basic Salary ≤ AED 16,000)

AED 5 / month

Annual Premium: AED 60 + VAT

Max Monthly Payout (60% Basic Salary): AED 10,000 / month

Max Total Claim (3 Months): AED 30,000

Mandatory Non-Subscription Fine: AED 400

Employees who fail to subscribe or renew their ILOE policy within the mandatory timeframe face an automated MoHRE fine of AED 400. An additional AED 200 fine applies if policy installment payments are missed.

ILOE Plan Overview

Category 1 (≤ 16k):	AED 5/mo (Max AED 10k/mo payout)
Category 2 (> 16k):	AED 10/mo (Max AED 20k/mo payout)
Max Claim Duration:	3 Consecutive Months per claim

Interlinked UAE Compliance Portals

🧮 End-of-Service Gratuity Calculator →🌟 UAE Golden Visa Evaluator →👤 5-Year Green Visa Guide →

Frequently Asked Questions (ILOE Rules)

Yes. Under Ministerial Decision No. 604 of 2022, ILOE (Involuntary Loss of Employment) insurance is mandatory for all private sector and federal government employees in the UAE. Failure to subscribe results in a mandatory AED 400 MoHRE fine.

ILOE pays 60% of the employee's average basic salary for up to 3 consecutive months per claim. Category 1 pays up to AED 10,000 per month (max AED 30,000 total), while Category 2 pays up to AED 20,000 per month (max AED 60,000 total).

Exemptions include business owners/investors who own their enterprise, domestic helpers (see our Domestic Helper Visa Guide), temporary contract workers, juveniles under 18 years of age, and retirees receiving a pension who have joined a new employer.

An employee must be subscribed to the ILOE scheme for a minimum of 12 consecutive months before becoming eligible to file an involuntary loss of employment claim.

UAE Government VerifiedOfficial Primary Reference Source

• ILOE Official Insurance Pool Portal: iloe.ae
• Ministry of Human Resources & Emiratisation (MoHRE ILOE Rules): mohre.gov.ae