Home / Unemployment Insurance (ILOE)
A small monthly premium that pays 60% of your basic salary for up to three months if you lose your job involuntarily.
The Involuntary Loss of Employment scheme, introduced by Federal Decree-Law No. 13 of 2022, is a mandatory unemployment insurance for most employees in the mainland UAE and many free zones. You pay a small monthly premium; if you subsequently lose your job through no fault of your own, it pays a cash benefit while you look for work.
It is genuinely insurance, not savings. If you never claim, you do not get the premiums back — which is why the cost is so low.
| Category A | Category B | |
|---|---|---|
| Who | Basic salary AED 16,000 or less | Basic salary above AED 16,000 |
| Premium | AED 5 per month | AED 10 per month |
| Maximum monthly benefit | AED 10,000 | AED 20,000 |
Premiums may be paid monthly, quarterly, half-yearly or annually, and there is usually a small VAT charge on top. Subscription is the employee's responsibility, not the employer's — this is the single most common reason people find they are not covered when they need to claim.
Note it is 60% of basic, not gross. On a gross salary of AED 20,000 with a basic of AED 12,000, the benefit is 60% of 12,000 = AED 7,200 a month, not 60% of 20,000.
The resignation exclusion is fundamental. ILOE covers involuntary loss of employment, which is quite different from gratuity, where resignation makes no difference at all.
They are entirely separate, and one does not reduce the other:
| Gratuity | ILOE | |
|---|---|---|
| Paid by | Your employer | The insurance pool |
| Affected by resignation? | No | Yes — resignation disqualifies you |
| Based on | Length of service and final basic salary | Average basic salary over the last 6 months |
| Form | One lump sum | Up to 3 monthly payments |
Receiving gratuity does not prevent an ILOE claim, and claiming ILOE does not reduce your gratuity. If you are made redundant, you may well be entitled to both.
The Involuntary Loss of Employment scheme, a mandatory unemployment insurance introduced by Federal Decree-Law 13 of 2022. Employees pay a small monthly premium and receive a cash benefit if they lose their job involuntarily.
60% of your average basic salary over the six months before job loss, capped at AED 10,000 a month for Category A or AED 20,000 for Category B, for a maximum of three months per claim.
AED 5 a month if your basic salary is AED 16,000 or less, or AED 10 a month if it is above that, plus a small VAT charge. Premiums can be paid monthly or in advance.
No. ILOE covers involuntary loss of employment only. Resignation and dismissal for disciplinary reasons both disqualify you from claiming.
The employee, not the employer. This surprises many people, and an unpaid or lapsed subscription generally means no cover when you need it.
No. They are entirely separate — gratuity is paid by your employer based on service, while ILOE is paid from an insurance pool. If you are made redundant you may be entitled to both.