Mandatory Federal Scheme — Decree-Law No. 13 of 2022
UAE ILOE Unemployment Insurance Guide
Complete handbook on mandatory Involuntary Loss of Employment (ILOE) insurance — premium categories, 60% basic salary payout formulas, claim deadlines, and AED 400 non-subscription fine.
Mandatory Social Safety Net for UAE Workers
The UAE enacted Federal Decree-Law No. 13 of 2022 concerning the Unemployment Insurance Scheme (ILOE) to provide financial security for workers who lose their jobs involuntarily due to redundancy, corporate restructuring, or company liquidation.
Subscription is the legal responsibility of the individual employee. Failure to subscribe carries an automatic AED 400 fine.
Category 1: Basic Salary AED 16,000 or Below
| Insurance Metric | Statutory Rate / Cap |
|---|---|
| Monthly Insurance Premium | AED 5 per month (+ VAT) — AED 60/year |
| Monthly Cash Compensation (60% Basic) | AED 10,000 per month |
| Maximum Total Claim Payout (3 Months) | AED 30,000 total (3 consecutive months payout) |
| Minimum Subscription Period to Claim | 12 consecutive months of paid premiums |
Claim Eligibility Conditions
- ✅ Must have completed 12 consecutive months of paid subscription in ILOE
- ✅ Job loss must be INVOLUNTARY (redundancy, layoff, restructuring, closure)
- ❌ NOT ELIGIBLE if job loss is due to resignation, misconduct, or absconding
- ⏱️ Claim must be filed within 30 calendar days of official termination date
- 💵 Payout: 60% of average basic salary over last 6 months prior to job loss
How to Subscribe & Pay Premiums
- 📲 ILOE Portal & App: Subscribe online via iloe.ae or ILOE mobile app
- 🏬 Authorized Channels: Subscribe via Al Ansari Exchange, Tawjeeh/Tasheel centers
- 💳 Payment Frequency: Pay annually (AED 60 or AED 120) or semi-annually
- ⚠️ Non-Payment Fine: AED 200 fine if premiums are missed for > 3 months
- ⚠️ Non-Subscription Fine: AED 400 fine deducted via WPS or visa renewal
Frequently Asked Questions
Yes. ILOE is mandatory for all employees in the private sector and federal government under Federal Decree-Law No. 13 of 2022. Non-subscription carries an automatic fine of AED 400.
ILOE pays 60% of the employee's average basic salary for up to 3 consecutive months. Category 1 pays up to AED 10,000/month; Category 2 pays up to AED 20,000/month.
Exemptions include: investors/business owners, domestic workers, temporary contract workers, juveniles under 18, and retirees receiving a pension who take a new job.
🧮 ILOE Premium & Payout Calculator →💼 UAE Labour & Employment Laws Guide →💰 MoHRE End of Service Gratuity Calculator →
ILOE Portal Verified
• Official ILOE Portal: iloe.ae
• ILOE Customer Helpline: 600 599 555