How much is ILOE insurance in the UAE?

Premiums follow two categories keyed to basic salary. Category A, for a basic salary of AED 16,000 or below, is AED 5 per month or AED 60 a year. Category B, above AED 16,000, is AED 10 per month or AED 120 a year.

How much does ILOE pay out?

The benefit is 60% of the basic salary immediately before the loss of employment, subject to the category cap — AED 10,000 a month for Category A and AED 20,000 for Category B — and is paid for a maximum of three consecutive months per claim.

How long must I have paid premiums before I can claim?

Twelve consecutive months of premiums are required before a claim can be made. Eligibility also depends on the reason for leaving and on filing the claim in time.

UAE Unemployment Insurance (ILOE) Calculator

Monthly basic salary (AED)

Months of premiums paid

Subscription status

How this works. Category, premium, the 60% benefit rate, the monthly caps, the three-month limit, the twelve-month qualifying period and the fines are the published scheme figures set out in our ILOE guide under Federal Decree-Law 13 of 2022. Benefit is calculated on basic salary immediately before the loss of employment. Estimates only — eligibility also turns on the reason for leaving and on your claim being filed in time. Speak to us if a claim has been refused.

How the ILOE scheme works

Involuntary Loss of Employment insurance is compulsory for most employees in the private sector and federal government under Federal Decree-Law 13 of 2022. It is a small monthly premium that buys a short income bridge if you lose your job for a reason outside your control.

The two categories

Category A — basic salary AED 16,000 or below: AED 5 per month (AED 60 a year), benefit capped at AED 10,000 a month
Category B — basic salary above AED 16,000: AED 10 per month (AED 120 a year), benefit capped at AED 20,000 a month

What it pays

60% of the basic salary immediately before the loss of employment, subject to the category cap, for a maximum of three consecutive months per claim. Twelve consecutive months of premiums are required before any claim can be made.

What counts as basic salary?

The contractual base figure in your employment contract — excluding housing, transport, telephone, food and education allowances. The same basis sets your category and your benefit.

The fines, and why people meet them late

Failing to subscribe within the grace period carries AED 400. Leaving premiums unpaid for more than three months carries AED 200. Neither is large, but an unpaid fine can block the renewal of a work permit — which is usually the moment it is discovered, and the moment it becomes urgent. At AED 60 to AED 120 a year, the premium is trivial against both the fine and the lost cover.

When a claim is refused

Subscription alone does not guarantee payment. Claims turn on the reason the employment ended, on the twelve-month qualifying period, and on filing in time. Where a claim is refused or a fine is disputed, the route runs through MOHRE and, if unresolved, the Labour Courts. Our ILOE guide sets out the scheme in full; our gratuity calculator covers end-of-service entitlement, which is separate from and additional to any ILOE benefit.