The Ministry of Human Resources and Emiratisation (MOHRE) announced that more than 10,500 workers in the UAE have benefited from the Unemployment Insurance policy in 2024, receiving crucial financial support during periods of unemployment. In Jan 2025, MOHRE said it covers approximately 9 million subscribers.
Officially known as the Involuntary Loss of Employment (ILOE), this mandatory insurance scheme has acted as a comprehensive social safety net in order to provide UAE residents with financial security in case they lose their jobs due to reasons other than disciplinary action or resignation.
What is Unemployment Insurance?
The mandatory unemployment insurance scheme came into effect on 01 January 2023, and it was made mandatory for employees in the UAE. If they lose their job at least 12 months after the start of their insurance subscription, they will receive 60% of their base salary for up to three months, ensuring stability as workers transition to new employment opportunities. The system reflects the UAE government’s ongoing commitment to supporting employees during challenging periods and maintaining economic stability.
Those exempted from subscribing to the unemployment insurance are company investors, owners of facilities, domestic helpers, employees with a temporary employment contract, juveniles under 18 years of age, and retired persons who receive a retirement pension.
If the employees resign themselves from a company, if any fraud was involved, or if they get fired for disciplinary reasons under the UAE’s Labour Law (or any other applicable laws), then they are not eligible for the unemployment insurance.
What’s new
In January 2024, the ILOE Insurance Pool (represented by Dubai Insurance) updated their terms and conditions for ILOE: Payments will no longer be accepted in monthly, quarterly, 6-monthly or annual instalments for new policy subscriptions. New subscriptions must be paid in full, and they have to be renewed for a minimum two year period.
How do you subscribe?
You can subscribe to the policy through bank ATMs, kiosk machines, or MOHRE-approved financial institutions.
- Visit the ILOE website – www.iloe.ae and click on ‘Subscribe/Renew Here’.
- Select your employment category and enter your Emirates ID and mobile number.
- Enter the one-time password (OTP) sent via SMS for verification.
- Once logged in, you will see a dashboard displaying:
- Your insurance category
- Your personal details
- The total premium for two years
- Example: If you fall under Category A, the total cost will be approximately Dh126 for two years.
- Confirm your details, agree to the terms and conditions, and proceed to payment.
- Enter your credit or debit card details and click ‘Pay’.
- You will receive a confirmation message once the payment is successful.
If your employees use our C3Pay payroll cards, then they can simply subscribe to the Unemployment Insurance via the C3Pay app. As an employer, HR/Finance manager or business owner, you can also Bulk Subscribe all your employees in one go through our Edenred payroll portal. Any new employees (C3Pay cardholders) whom you bulk subscribe, and who do not have an existing policy, will automatically be subscribed to the insurance for two years.
Avoid fines and penalties!
Employees who fail to subscribe to the ILOE will be fined AED 400, and employers who are caught colluding with the insured to get the insurance benefits, could be fined up to AED 20,000. Unpaid penalties shall be deducted either from the employees’ salary or end-of-service benefits.
Under ‘fines and collection methods’, the ministerial resolution states: “Workers or employees who fail to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Ministry of Human Resources and Emiratisation.”
Employees can pay these fines via the MOHRE website, MOHRE app or any ministry-approved business service centre. It is also possible to apply for paying through instalments or request a waiver.
How to submit a compensation claim?
From the date of their unemployment, employees have a period of 30 days to submit their claim to the ILOE Insurance Pool (represented by Dubai Insurance). They will receive the compensation within two weeks. They will get paid for three months or until they find a job, whichever comes first.
If you are an employee, kindly note that you will be eligible for compensation only if you have paid the insurance subscription for the entire year and you have legally been present in the UAE, since your unemployment. Your right to compensation will be forfeited if you cancel your residency and leave the country, or join a new job, within the processing period.
For any other information on the Dubai Insurance policy updates, feel free to contact the ILOE contact centre on 600 599 555.
Edenred UAE is happy to help with any information related to your employees’ financial rights, WPS-compliant payments or salary cards for your employees. Feel free to reach out to us on info.ae@edenred.com
