What Is ILOE, UAE’s Unemployment Insurance Scheme? Here Is The Cost, Application Process & More

Elevating livelihood with UAE's ILOE unemployment insurance scheme

by Deeplata Garde
What Is ILOE, UAE’s Unemployment Insurance Scheme? Here Is The Cost, Application Process & More

In the dynamic landscape of the UAE’s labour market, the Involuntary Loss of Employment (ILOE) emerges as a distinctive initiative. It’s a beacon of financial security in the face of unforeseen job loss. Glorified in Federal Decree-Law No. 13 of 2022, this unemployment insurance framework exceeds the conventional process. It aims to provide a robust safety net for employees navigating the stormy situation of involuntary unemployment. The focal point extends beyond mere financial compensation. It is a strategic move to fortify the foundation of a competitive knowledge economy in the UAE. This, in turn, contributes significantly to the overarching goal of attracting and retaining premier international talents in the region. Here’s all you need to know about this specific scheme.

Table Of Contents
1. Eligibility
2. Registration
3. Penalties
4. Cost Of Subscription
5. Summary

1. Eligibility Criteria

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Understanding who can benefit from the ILOE scheme is essential. It includes both Emiratis and residents working in the government or private sectors. However, some people are not required to join. This includes business owners or investors, like those who own companies. Also, certain jobs, like domestic helpers or temporary workers, and young people under 18, as well as retirees starting new jobs, don’t have to be part of it.

2. Registration Process

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Knowing how to sign up for the ILOE scheme is important for a smooth process. The Ministry of Human Resources and Emiratisation (MoHRE) manages this through the ILOE Insurance Pool platform. It’s inviting workers to sign up using its easy-to-use website. If they meet the requirements, employees can enrol through seven different channels, including the Dubai Insurance internet portal or in-person at Al Ansari Exchange or government business centres (Tawjeeh or Tasheel), which are close service sites. Make sure you always have your UAE cellphone number and Emirates ID number on hand.

3. Penalties If Not Enrolled For The UAE’S ILOE Scheme

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The scheme was announced in effect on January 1 2023. The registration period was extended till October 1st 2023 after announcing the six-month period. Apart from encouraging people to sign up, the UAE Government uses fines to stop people from ignoring the ILOE scheme. Starting from 1 October 2023, there’s a strict penalty of Dh400 for those who don’t register. This isn’t just about money; it also gives the government more control, affecting the ability to get new work permits until the fine is paid. This makes sure people follow the rules and join the scheme.

4. Cost Of Subscription For UAE’s ILOE

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Figuring out how much the ILOE scheme costs gives us an idea of its fairness. The cost depends on how much a worker earns. If the salary is AED 16,000 or less, the monthly insurance payment is just AED 5, making it AED 60 for the whole year. On the other hand, if the salary is more than AED 16,000, the monthly payment is AED 10, totalling AED 120 annually. You can choose to pay every month, every three months, every six months, or once a year, making it more convenient for workers.

Also Read: UAE Has Launched An Unemployment Insurance Scheme: All You Need To Know


In the big picture of the UAE’s economy, the ILOE scheme shows that the government is taking action. It makes sure people not only have money but also keep their dignity when they are between jobs. As workers and their families deal with the ups and downs of finding jobs, the ILOE scheme becomes a big help. It doesn’t just handle economic problems but also makes the UAE attractive to talented people from around the world, helping the country grow and develop.

Cover Image Courtesy: Canva

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