ILOE unemployment insurance in the UAE

ByKhalid Bin Rashid Published: Last Updated:

ILOE is the unemployment insurance scheme for the UAE. Its stated aim is to provide a certain degree of protection for individuals in the private sector and federal government sectors by compensating them for a limited duration, not exceeding 3 months for each claim, in case of job loss because of termination. It is a low-cost job security net, and MOHRE states that it comes at no additional cost to employers.

The policy was issued pursuant to Decree-Law No. 13 of 2022 regarding Unemployment Insurance and Cabinet Resolution No. 97 of 2022 regarding the mechanisms and controls for implementing Unemployment Insurance. The Arabic version of the policy prevails in case of disagreement. The insurer is Dubai Insurance Company, in addition to the members of the Insurance Pool listed in the Policy Schedule.

ILOE unemployment insurance subscribers and exemptions

Subscribing to the ILOE insurance scheme is mandatory for all private sector and federal government sector employees. That mandatory scope is qualified by the exemption list below, which is stated as exemptions only.

The exemptions stated by MOHRE are: investors, meaning the owner of the facility in which he or she works; domestic helpers; an employee with a temporary employment contract; juveniles under 18 years of age; and a retiree who receives a retirement pension and has joined a new job.

The policy names the private sector and the federal government sector as the covered sectors. No local government wording appears in the policy document checked, and no local government coverage is claimed. The exemption list must not be read as an entitlement for readers generally. Each exemption applies only as stated.

Categories premiums and payment limits

The category depends on basic salary. The First Category is 5 AED per month if the basic salary is 16,000 AED or less. The Second Category is 10 AED per month if the basic salary is greater than 16,000 AED. MOHRE states the annual equivalents as AED 60 annually for the first category and AED 120 annually for the second category.

Compensation is capped. The maximum monthly limit is 60 percent of basic salary, calculated based on the average basic salary of the last 6 months prior to unemployment, and for a maximum of 3 months per claim. The monthly benefit must not exceed AED 10,000 for the first category and AED 20,000 for the second category. The maximum benefit for any one claim is 3 months. The aggregate claim must not exceed 12 months over the entire service period in the UAE labour market.

A worker whose remuneration is on a commission basis may choose the subscription category if the basic salary is unspecified in the labour offer and contract. The policy states: Insurance Premium is subject to VAT if applicable. That line states no VAT amount and no price conversion is made.

Entitlement to compensation arises after 12 months have passed from the date of subscription, provided there is no interruption of subscription for more than 3 months. Cover ends on reaching the maximum aggregate limit or on the death of the insured person.

Premium settlement follows the agreed schedule. Payments may be made monthly, quarterly, semi-annually, or annually, within a maximum of 90 days from the payment due date. The Insurance Certificate shall be considered cancelled if the insured fails to make any payment for more than 90 days from its due date. The insured shall also bear all fines and penalties according to the legislation in force. No part of the paid Insurance Premium will be refunded in the event of cancellation.

Two further premium rules are stated in the policy. An overdue premium must be settled within 3 months where an abscondment complaint is invalidated. Premiums must continue to be paid while a labour complaint referred to the judiciary runs and the work permit remains valid. A premium adjustment on a salary increase is available on the insured person’s request.

If the 3-month maximum is exhausted during a certificate period, the certificate is considered cancelled and the insured shall be obligated to subscribe for a period of 12 consecutive months before submitting a new claim. That rule does not apply if the benefit received was less than the 3-month maximum.

Online subscription steps as worded by MOHRE

MOHRE states the online subscription steps in these words.

  • Visit the website (www.iloe.ae).
  • Click on subscribe here to access the registration page.
  • Select the relevant sector you are employed in.
  • Enter your personal identification data, phone number and verification code sent via SMS.
  • Choose your preferred payment interval (monthly, quarterly, semi-annual or annual).
  • Enter your email address.
  • Move onto the payment gateway to complete registration successfully.

Subscription and premium payment channels stated in the policy are: Insurance Pool Website and smart application; Kiosks and ATMs; Businessmen Service Centers; Exchange Companies; Banks and Banking Applications; Telecom Companies Bill (DU and Etisalat); SMS; and any other channel agreed between the Ministry and the Insurance Pool. The steps inside the kiosk, bank, telecom, and other channels are not verified on the official pages checked, so only the online steps above are stated. MOHRE describes the Insurance Pool website as the preferred channel and lists the same wider channels, including the ILOE app, kiosks, business service centers, money exchange centers, bank smart apps, SMS, and telecom bills.

Claim deadline documents and payment timing

A claim must be submitted within 30 days from the date of termination, through the channels approved by MOHRE. The ILOE answers page states the same 30-day deadline and lists the channels as: the ILOE portal (www.iloe.ae), the ILOE mobile app, the ILOE call center at 600599555, and any other specified channels by MOHRE in coordination with the Insurance Pool. The policy claim channels are stated as the Insurance Pool Website, smart application, call centre, and any other channel agreed between the Ministry and the Pool.

The claim form must be filled in and submitted to the Administrator within 30 days from the date of termination of the labour relationship. The documents to attach are: the dismissal document indicating the date and reason for unemployment, and an undertaking to provide a copy of the final judicial ruling in the event of a labour lawsuit, plus any further documents the insurer may request as agreed with MOHRE in the cases listed.

Dubai Insurance Company shall pay no later than two weeks from the date of receiving the claim, where the documents comply with the established eligibility criteria, and the insurer transfers the claim payment to the account of the insured as determined by the insured. The MOHRE news wording states the same timing in plain terms: the claim can be submitted within 30 days of job loss and will be processed within two weeks of submission.

Eligibility conditions

The policy states 10 eligibility conditions. All 10 must be read together, because the claim depends on meeting the established criteria.

  1. Subscription for at least 12 consecutive months, with no interruption of more than 3 consecutive months.
  2. Premium compliance per the agreed plan.
  3. Proof of unemployment for a reason other than resignation.
  4. Not dismissed for disciplinary reasons under the labour or human resources legislation.
  5. Claim within 30 days of termination, or of settlement of a labour complaint referred to the judiciary.
  6. No existing abscondment complaint.
  7. Claim not based on fraud or deception, and the employer not fictitious.
  8. Loss of work not due to non-peaceful labour strikes or stoppages.
  9. Legally resident in the country.
  10. Loss of work not based on war, riot, or insurrection, nuclear or radioactive, biological or chemical terrorism, or government expropriation, nationalisation, or seizure leading to insolvency.

Fines cancellation and exemption requests

MOHRE stated fine amounts for non-compliance in a news item dated 13 December 2023. Workers who fail to subscribe face a AED 400 fine, while those who do not meet their regular payment obligations incur a fine of AED 200. Those amounts are reported with their December 2023 source date. They are not presented as a current deadline or a current count.

The same December 2023 item states that the legal deadline for subscribing ended in October 2023, 10 months after the system was implemented on 1 January 2023. It also states a 4-month registration window for private sector employees who received work permits after 1 October 2023. Both windows are historical. Neither is presented as a current deadline.

If the insured does not comply with premium payment according to the chosen payment plan for a period exceeding 3 months from the premium due date, the insurance policy will be cancelled and the insured will be subjected to pay a fine as per the applicable law. The employee must then re-subscribe through a new insurance policy.

Fines are payable using the MOHRE smart application, website, or by visiting authorised business service centres. Digital channels allow users to submit requests to pay fees in instalment plans. Exemption requests, with supporting documents, are decided within 15 working days through official channels. The December 2023 MOHRE item also stated that non-payment may lead to being denied new work permits, and that the fine amount will then be deducted from the employee salary or end-of-service benefits.

Forfeiture wordings stated both ways

The two wordings on forfeiture differ, and both are recorded without harmonising them.

The policy and ILOE answers wording states the right to compensation is lost if the insured leaves the country or is absent, or joins or accepts a new job. That wording carries no within the processing period qualifier in the text checked.

The MOHRE news wording states that the right to compensation is forfeited if the insured cancels their residency and leaves the country, or joins a new job, within the processing period. That wording adds the processing period qualifier, and it also requires residency cancellation as well as leaving, while the policy wording requires only leaving or being absent, or joining.

A reader must not assume that one wording overrides the other. The difference is recorded as stated.

Policy and statement viewing route

The check route verified on the ILOE answers page is a policy and statement view, not a claim status check.

  • Log in to the ILOE portal at www.iloe.ae or the ILOE mobile app.
  • Choose your sector.
  • Add your Emirates ID and mobile number and request OTP.
  • Click on View Policy Details.

The same route is repeated with Click on View Statement.

No official page shows a claim progress tracker, and no subscription status wording beyond the policy and statement views is verified. No claim status check is promised.

Contacts and complaints

The Administrator is reachable by phone at 600599555, by mail at PO Box 3027, Dubai, UAE, or by email at ILOEHELP@ILOE.AE. Policy complaints go to the Insurer, with a response within five working days, and then to the Central Bank of the UAE. MOHRE assistance is available at 600590000.

Sources

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Senior Expert in UAE Visa and Emirates ID

Khalid Bin Rashid is a Dubai native and Senior Expert in UAE Visa and Emirates ID. He writes the UAE guides covering Emirates ID status, renewal, tracking and changes, as well as UAE visa rules, bans and fines, through ICP and GDRFA Dubai.

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