A Practical Reminder for Employers and Employees on ILOE Insurance in the UAE
- 16.10.2026
- Posted by: Uwe Hohmann
- Categories: Dubai, Middle East
The UAE ILOE (Involuntary Loss of Employment) Insurance Scheme has been mandatory since 01.01.2023. Here is a clear overview of who must register, how the scheme works and what it costs to get it wrong.
What the ILOE Scheme Is
The scheme was introduced under Federal Decree-Law No. 13 of 2022 and is regulated by Ministerial Resolution No. 604 of 2022. It is the first unemployment insurance programme in the UAE, and its purpose is simple: if an employee loses their job through no fault of their own, they receive a temporary income while they look for their next role.
The scheme applies to employees in the private sector, covering both mainland and free zone companies, as well as the federal government. Nationality makes no difference, so UAE nationals and expatriate residents are treated the same way.
Who Must Register and Who Is Exempt
Every employee who holds an employment visa or work permit is required to subscribe, unless they fall into one of the exempt categories. These are investors who own the company they work at, domestic workers, employees on temporary contracts, juveniles under the age of 18, and retirees who receive a pension and have since joined a new job.
New joiners do not have unlimited time. Employees who receive a new work permit are expected to subscribe within four months, so ILOE registration should sit alongside the Emirates ID and medical steps when someone starts with your company.
It is important to be clear on one point. Under the regulations, registration is the responsibility of the employee, not the employer. In practice, however, many businesses choose to remind their staff, check compliance during onboarding or arrange group enrolment, simply because the consequences of a missed registration can end up on the employer’s desk.
How Employees Can Register
Registration takes only a few minutes through the official ILOE portal at www.iloe.ae or the ILOE mobile app. Employees need two things to get started: their Emirates ID number and a UAE mobile number. Once the subscription is paid, a certificate of insurance can be downloaded immediately as proof of enrolment.
For employees who prefer other channels, subscriptions and payments can also be completed through the MoHRE (Ministry of Human Resources and Emiratisation) app and selected exchange houses and service centres.
What ILOE Insurance Costs and What It Pays
The premium is based on basic salary only, not the full package with allowances. Employees with a basic salary of AED 16,000 or less fall into Category A and pay AED 5 per month plus VAT (Value Added Tax). Employees earning a basic salary above AED 16,000 fall into Category B and pay AED 10 per month plus VAT. Premiums can be paid monthly, quarterly, half-yearly or annually.
In return, an insured employee who loses their job involuntarily can claim 60% of their average basic salary over the last six months, for up to three months per claim. Compensation is capped at AED 10,000 per month for Category A and AED 20,000 per month for Category B.
There are conditions. The employee must have been subscribed for at least 12 consecutive months, must not have resigned or been dismissed for disciplinary reasons, and should file the claim within 30 days of losing their job. Payments stop if the employee starts a new job or leaves the UAE. For a cost of AED 60 to AED 120 a year, it is one of the most affordable forms of financial protection available to employees in the country.
Fines and Penalties for Non-Compliance
MoHRE has been enforcing penalties since 01.10.2023. An employee who fails to subscribe faces a fine of AED 400. An employee who subscribes but stops paying premiums for more than three months faces a further fine of AED 200, and the policy may be cancelled.
The consequences do not end with the fine itself. If a fine remains unpaid, it can be deducted directly from the employee’s salary through the WPS (Wage Protection System) or from their end-of-service gratuity. An employee with outstanding ILOE fines will also not be granted a new work permit until those fines are settled, which can delay a new hire, a transfer or a job change.
What This Means for Your Business
We recommend asking all eligible staff to confirm their status on iloe.ae, adding ILOE registration to your onboarding checklist for new hires, and keeping a simple record of who has confirmed their subscription. If an employee has already subscribed, there is nothing further they need to do other than keep their premiums up to date.
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