UAE Unemployment Insurance (ILOE)
The UAE Involuntary Loss of Employment (ILOE) scheme is a mandatory insurance programme introduced under Federal Law by Decree No. 13 of 2022. It provides financial support to employees who lose their jobs involuntarily.
Who Must Enrol?
All employees working in the UAE — both public and private sector — are required to enrol. This includes expatriate and UAE national employees.
Exempt categories:
- Business owners (investors) who own and manage their own company
- Domestic workers (maids, drivers, etc.)
- Temporary contract workers
- Employees under 18 years of age
Enrolment Process
Employees (not employers) are responsible for enrolling. Enrolment is available through:
- The ILOE website (iloe.ae)
- ADIB, Emirates NBD, and other participating banks
- Insurance company portals (e.g. ADNIC, Daman)
- Government kiosks and service centres
Monthly Premiums
| Salary | Monthly Premium |
|---|---|
| Basic salary up to AED 16,000 | AED 5/month |
| Basic salary above AED 16,000 | AED 10/month |
Benefits Provided
If an employee is made redundant (not resigned, not terminated for cause):
- Salary ≤ AED 16,000: Benefit = 60% of salary for up to 3 months
- Salary > AED 16,000: Benefit = 60% of salary capped at AED 20,000/month for up to 3 months
What Happens If an Employee Does Not Enrol?
Employees who fail to enrol face a AED 400 fine. Employees who fail to pay premiums for more than 3 months are disenrolled and lose their coverage.
Employer's Role
Employers are not required to pay ILOE premiums, but they are encouraged to ensure employees have enrolled and should communicate the obligation during onboarding. Kounted includes ILOE enrolment reminders in all new employee onboarding checklists.