ILOE (Unemployment Insurance)
Also known as: Involuntary Loss of Employment, unemployment insurance
Quick Answer
ILOE (Involuntary Loss of Employment) is the UAE's mandatory unemployment-insurance scheme. Most private-sector and federal employees must subscribe and pay a small monthly premium; if they lose their job involuntarily, they receive cash compensation for a limited period.
The premium is tiered by basic salary: AED 5 per month for basic salary up to AED 16,000 (Category A) and AED 10 per month above that (Category B), per the ILOE scheme (iloe.ae). Compensation is 60% of the average basic salary over the last six months, capped at AED 10,000 (Category A) or AED 20,000 (Category B) per month for up to three consecutive months.
To claim, an employee must have subscribed and paid premiums for at least 12 consecutive months, and the total lifetime benefit is capped at 12 months across a person's UAE career. The employee subscribes individually, but failing to enrol or lapsing on payment can lead to fines — a compliance point ZETUP flags for client staff.
Frequently asked questions
How much does ILOE unemployment insurance cost?
AED 5 per month for basic salary up to AED 16,000, or AED 10 per month above that (per the ILOE scheme). It pays 60% of average basic salary, capped at AED 10,000 or 20,000 per month, for up to 3 months.
Is ILOE mandatory in the UAE?
Yes — most private-sector and federal employees must subscribe. You must have paid premiums for at least 12 consecutive months to claim, and non-enrolment or lapsed payment can carry fines.
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