ILOE (Involuntary Loss of Employment) is the UAE’s mandatory unemployment insurance, paying 60% of your average basic salary over your last six months for up to three months if you’re terminated involuntarily — capped at AED 10,000/month for Category A or AED 20,000/month for Category B. The premium is AED 5 or AED 10 a month depending on your salary. You must have 12 consecutive months of subscription and file your claim within 30 days of termination.
How Much ILOE Insurance Pays and What It Costs
Only basic salary counts toward the 60% calculation — housing allowance, transport allowance, commissions, and bonuses are all excluded, a distinction that trips up many first-time claimants who calculate based on total package instead.
| Category A | Category B | |
|---|---|---|
| Basic salary | AED 16,000 or below | Above AED 16,000 |
| Monthly premium | AED 5 + VAT | AED 10 + VAT |
| Monthly benefit cap | AED 10,000 | AED 20,000 |
| Maximum duration | 3 months per claim | 3 months per claim |
There’s also a lifetime cap: total ILOE payouts across your entire working life in the UAE cannot exceed 12 monthly benefits, regardless of how many separate jobs or claims that spans.
By the end of 2025, roughly 90% of the UAE’s targeted workforce had enrolled, with more than AED 350 million paid out in compensation since the scheme launched — a genuine indication this isn’t a rarely-used benefit.
ILOE Compensation Calculator
A rule-based estimate of your monthly ILOE payout — based on your actual reason for unemployment, subscription history, and last six months of basic salary. Not a confirmed entitlement; the real decision depends on your official ILOE record.
Filing a ILOE Claim Within the 30-Day Window
The 30-day clock starts from your actual termination date, not your visa cancellation date. Cancellation paperwork often lags weeks behind the real termination — waiting for it before filing is the single most common way people miss the deadline entirely.
- Log into iloe.ae or the MOHRE app with your Emirates ID and verify by OTP
- Select "File a Claim" and confirm your termination date and reason
- Upload your Emirates ID, employment contract, termination letter, visa cancellation proof, and six months of bank statements or payslips
- Choose payout method — bank transfer to a UAE IBAN in your own name, or an approved exchange house
- Submit and track your reference number
Approved claims are paid within two weeks of submission, with monthly payments continuing until either three months pass or you start a new job — whichever comes first.
Pro tip: If your basic salary crosses the AED 16,000 threshold into Category B, the portal does not upgrade your tier automatically — you have to manually update it yourself, or you risk being assessed at the wrong category if you ever need to claim.
Why ILOE Claims Actually Get Rejected
Your exit being coded as a resignation is the most common rejection reason — even if you were effectively pushed out, if MOHRE's system shows "resignation," the claim is automatically denied. Fixing this requires filing a labour dispute to correct the termination code before resubmitting.
A gap in your subscription history can disqualify you even if you're currently active — the 12-month requirement means consecutive coverage, not just being subscribed at the moment of termination. Disciplinary dismissals are explicitly excluded, as are mismatched bank details — your IBAN must match your Emirates ID name exactly, so a joint account or spouse's account will bounce the payout.
An outstanding ILOE fine on your record holds any claim until it's settled. If you skipped subscribing at some point, clear that fine first before attempting to file.
The Fine for Not Subscribing
Never subscribing carries a AED 400 fine. If you did subscribe but let premiums lapse for more than three months, an additional AED 200 fine applies on top of what you owe.
New employees have 4 months from their start date to subscribe — missing this window doesn't just trigger the fine, it also delays when your 12-month eligibility clock actually starts.
Unresolved fines can block work-permit renewals and visa processing — MOHRE checks ILOE compliance at these transaction points, so a fine from years ago can resurface unexpectedly at your next renewal.
Frequently Asked Questions
How much does ILOE insurance pay if I'm terminated?
60% of your average basic salary over the last six months, monthly for up to three months, capped at AED 10,000 (Category A) or AED 20,000 (Category B) per month.
Can I claim ILOE if I resigned?
No. The scheme only covers employer-initiated termination recorded as such in MOHRE. Resignations, mutual separation agreements, and disciplinary dismissals are all excluded.
What is the ILOE fine for not subscribing?
AED 400 for never subscribing, plus an additional AED 200 if premiums lapse for more than three months after you did subscribe.
How long do I have to file an ILOE claim after termination?
30 days from your actual termination date — not your visa cancellation date, which often comes later and shouldn't be waited for.
Last verified: September 2026
Reviewed by: UAEwow Content Team
Source: Federal Decree-Law No. 13 of 2022; Ministry of Human Resources and Emiratisation (MOHRE) / iloe.ae
Not legal or financial advice. For disputed claims or termination coding issues, contact MOHRE directly or file a labour complaint.
