ILOE unemployment insurance
ILOE is the unemployment insurance scheme created by Federal Decree-Law No. 13 of 2022. It pays a part of an employee's basic salary for a limited time after a job loss. Employees in the federal government and the private sector are covered unless they fall in one of the exempt groups.
Legal basis
The scheme was created by Federal Decree-Law No. 13 of 2022 Concerning Unemployment Insurance Scheme, promulgated on 15 September 2022. ILOE, Federal Decree-Law No. 13 of 2022
The scheme is implemented through Cabinet Resolution No. 97 of 2022, Ministerial Decision No. 604 of 2022 and, for penalties, Ministerial Decision No. 340 of 2023. u.ae, Unemployment insurance scheme
Who it applies to
All private-sector and federal government employees must join the scheme, and the worker pays the insurance premium. u.ae, Unemployment insurance scheme
Five groups are exempt: investors (owners who own the entire business and manage it themselves), domestic workers, temporary-contract workers, people under 18, and retirees who receive a pension and have joined a new employer. ILOE, Federal Decree-Law No. 13 of 2022, Art. 3(1)
What it costs
Category A covers a basic salary of AED 16,000 or below. The premium is AED 5 plus VAT a month. ILOE, English flyer
Category B covers a basic salary above AED 16,000. The premium is AED 10 plus VAT a month. ILOE, English flyer
What it pays
The benefit is 60% of the average basic salary of the last six months before the job loss, for up to three months per claim. ILOE, policy terms and conditions
The monthly maximum is AED 10,000 for Category A and AED 20,000 for Category B. ILOE, policy terms and conditions
Cover over a working life in the UAE cannot exceed 12 months. ILOE, Federal Decree-Law No. 13 of 2022, Art. 6(2)
Eligibility for a claim
A claim needs a minimum subscription period of 12 consecutive months. The person may not have been dismissed for disciplinary reasons, and fraud or a fictitious establishment rules a claim out. Compensation stops if another employer hires the person. ILOE, Federal Decree-Law No. 13 of 2022, Art. 5
If it is missed
A worker who does not subscribe faces a fine of AED 400. MOHRE news, 13 December 2023
The fine amount is deducted from the employee's salary or end-of-service benefits. MOHRE news, 13 December 2023
Where to do it
ILOE lists these ways to subscribe and pay: the ILOE portal, the mobile app, exchange centres, telecom bills, SMS, bank apps, business centres, kiosks and ATMs. The helpline is 600599555. ILOE, English flyer
Questions about ILOE unemployment insurance
Who pays for ILOE insurance, the employee or the employer?
The employee. All private-sector and federal government employees must join the scheme, and the worker pays the insurance premium.
How much does ILOE cost?
Category A, for a basic salary of AED 16,000 or below, costs AED 5 plus VAT a month. Category B, above AED 16,000, costs AED 10 plus VAT a month.
How much does ILOE pay after a job loss?
It pays 60% of the average basic salary of the last six months, for up to three months per claim, with a monthly maximum of AED 10,000 in Category A and AED 20,000 in Category B. Total cover over a working life in the UAE cannot exceed 12 months.
What is the ILOE fine for not subscribing?
AED 400 for the worker. It is deducted from the employee's salary or end-of-service benefits.
A plain guide to the rules, not legal or tax advice. Checked 17 October 2026.
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