UAE Involuntary Loss of Employment Insurance (ILOE): A Complete Guide

Suddenly losing your job can cause stress and financial hardship, especially when you are working away from home. To help workers in such situations, the UAE government has launched the Involuntary Loss of Employment Insurance (ILOE) scheme. This insurance scheme provides temporary income support to workers if they lose their job for reasons beyond their control.

In this guide, you will learn everything you need to know about ILOE - who it covers, how it works, how to register and why it is important.

What is ILOE?

Involuntary Loss of Employment Insurance (ILOE) is a government-backed scheme that supports employees who lose their jobs through no fault of their own. It provides them with a short-term monthly payment while they look for a new job. The aim is to provide financial relief and make the UAE job market safer and more attractive.

The scheme started on January 1, 2023, and covers both private and federal government employees in the UAE.

Who can apply?

Most full-time employees in the UAE must register for ILOE. It covers both UAE nationals and expatriate workers. But some groups are not included. These are:

• Domestic workers

• People under the age of 18

• Temporary workers

• Business owners or investors who run their own company

To claim benefits, you must be registered continuously for at least 12 months.

How much does it cost?

The cost of ILOE depends on your monthly salary. There are two plans:

If your salary is AED 16,000 or less:

• You pay AED 5 per month

• You can claim up to AED 10,000 per month

• If your salary is more than AED 16,000:

• You pay AED 10 per month

• You can claim up to AED 20,000 per month

If you lose your job, the insurance will pay you 60% of your basic salary per month for 3 months.

How to register

You can register for ILOE in several easy ways:

• Visit www.iloe.ae

• Use the ILOE mobile app

• Visit exchange centers such as Al Ansari

• Use a smart kiosk or ATM

• Visit customer happiness centers

Registration is easy and takes a few minutes. Employees are responsible for registering themselves unless the company agrees to do it for them.

What happens if you dont register?

If you dont register on time, you will be fined AED 400. If you stop paying your premiums for more than 3 months, you may also be fined AED 200. Thats why its important to stay active in the scheme.

How to claim insurance

If you lose your job, you can file a claim - but only if:

• You are registered and have been paying continuously for at least 12 months

• You havent left your job on your own

• You havent been fired for breaking the rules

• You are still in the UAE

• You submit your claim within 30 days of losing your job

Once your claim is approved, you will receive your first payment within 2 weeks.

Why ILOE is important

ILOE gives thousands of workers peace of mind. You know that even if you lose your job, you will still have some income while you look for another job. It also shows that the UAE cares about the people who live and work here.

This plan supports the government's larger plans to make the UAE a safe, stable and attractive place to work.

What should employers do?

Companies dont have to pay anything for the ILOE employees bear the cost. But its still wise for employers to help their workers understand the rules. Employers can guide their staff on how to register and why its important.

Also, if youre planning to expand your company into the UAE, knowing about the ILOE can help you comply. For example, when youre looking at Dubai Mainland company formation costs, its wise to include these types of legal and employee-related obligations in your budget.

ILOE and the UAE Job Market

The ILOE scheme boosts workers confidence. People are more likely to come to work in the UAE if they know theyll have some protection in tough times. Its good for the economy and good for business.

This is one reason why entrepreneurs and investors continue to choose the UAE for growth. If youre thinking about setting up a business in Dubai, programs like ILOE make the local job market more stable and reliable.

Final Thoughts

Involuntary redundancy insurance is more than just an insurance policy. Its a smart move to protect workers and build a stronger job market. With simple rules, low costs, and real benefits, ILOE makes life easier during unexpected job losses.

If youre working in the UAE, dont wait register today and protect yourself. And if youre running a business, make sure your team knows what ILOE is and why its important. Everyone benefits from a safer, more secure workplace.