What ILOE is
ILOE stands for Involuntary Loss of Employment. It is a mandatory unemployment-insurance scheme introduced by Federal Decree-Law No. 13 of 2022 and effective from January 2023. Every eligible employee subscribes; when they lose their job through no fault of their own, ILOE pays a monthly benefit for up to three months while they look for another role.
Who must subscribe
- Private-sector employees in the mainland — mandatory.
- Federal-government employees — mandatory.
- Free-zone employees — mandatory (with limited exceptions per DIFC/ADGM specific rules).
Categories that are not required to subscribe: investors (owners of their own business under investor sponsorship), domestic workers (governed separately by FDL 9/2022 — see the domestic worker guide), temporary contract workers with less than 12-month tenure, retirees who came back to work, and juveniles under 18.
The two premium tiers
| Basic salary | Monthly premium | Max monthly benefit |
|---|---|---|
| AED 16,000 or less | AED 5 | AED 10,000 |
| Above AED 16,000 | AED 10 | AED 20,000 |
Payment options include monthly (default), quarterly, semi-annual, or annual. Some employers pay on behalf of employees; others deduct from wages. The premium does not count toward end-of-service gratuity calculation.
The benefit
- 60% of your average basic salary over the six months preceding termination, subject to the cap in the table above.
- Paid for up to 3 months per claim.
- Up to 12 months of total benefits across a career, cumulative across multiple claims.
- Direct deposit to the beneficiary's UAE bank account.
Who is eligible to claim
All three conditions must be true:
- You've been paying ILOE premiums for at least 12 continuous months.
- You lost your job involuntarily — not resignation. If you were dismissed under Article 44 (for-cause misconduct — see the termination guide), you're excluded.
- Your previous claim, if any, ended more than 24 months ago. You cannot claim twice within a two-year window.
How to claim — step by step
- Get your termination documentation. Your final settlement, termination letter (or cancellation of visa), and MOHRE record of exit.
- File within 30 days of the employment end date through the ILOE portal (iloe.ae), the ILOE mobile app, or any authorized bank kiosk.
- Upload the required documents: passport copy, Emirates ID, termination letter, the last six months of wage records, and (if requested) a proof of ILOE subscription history.
- Await confirmation — typically within 2 weeks. First benefit payment arrives shortly after approval.
- Stay compliant. If you take a new job during the benefit period, notify ILOE immediately — payments must stop.
Penalties for non-subscription
Employees who fail to subscribe face fines (AED 400 initially, plus AED 200 for each month of unpaid premium) and can have their work permit renewals blocked. Employers do not directly control an employee's ILOE compliance, but many make subscription part of the onboarding checklist.
What ILOE is not
ILOE is not a substitute for gratuity, notice pay, or accrued leave cash-out. Those obligations remain fully due on termination alongside the ILOE benefit. See the full list of buckets owed on exit.