The Ministry of Human Resources and Emiratisation in the UAE introduced the unemployment insurance scheme in January 2023, making it mandatory for all national and expat employees in both public and private sectors to subscribe to the ILOE insurance. Failure to sign up or renew the policy can result in a fine of Dh400. Employees who proactively signed up for the ILOE insurance at the beginning of 2023 and onwards have been receiving renewal reminders.
To renew the ILOE insurance, individuals can visit the official ILOE insurance website and click on the ‘Subscribe/Renew Here’ button. They will need to select their category – private sector, Federal Government employee, or non-Registered in MOHRE (Free-zone workers) – confirm their details, choose the policy term, make a payment, and their insurance will be renewed for another year. If any issues arise during the process, they can contact the ILOE customer care hotline.
The insurance program is divided into two categories based on the employee’s monthly salary. Those earning Dh16,000 or less per month pay Dh5 monthly or Dh60 annually, while those earning more than Dh16,000 pay Dh10 monthly or Dh120 annually. Employees terminated from their job can claim the insurance policy within 30 days of unemployment through approved channels like the insurance pool’s e-portal, Smart application, or the ILOE call center. Compensation is capped at three months and should be paid within two weeks of the claim.
Not all individuals in the UAE are required to have ILOE insurance, as it excludes investors or establishment owners, domestic helpers, part-time employees, workers under 18, and retirees with a pension who have taken on a new job. The compensation benefits for those eligible for the policy include 60% of the average basic salary over the six months before unemployment, with maximum claim amounts of Dh10,000 per month for category A and Dh20,000 per month for category B, capped at three consecutive months.
