All about the UAE Unemployment Insurance Program (ILOE)

The development of the UAE is not just limited to its extraordinary real estate market and stunning infrastructure. The quality of life that the country provides makes it a top choice for thousands of people across the globe to settle down in. Among the numerous aspects contributing to its appeal is the sophisticated level of insurance that employees in the country get.

If you are an employee in the UAE, then this is a must-read for you. The Government of the UAE has made remarkable initiatives to provide a lifeline of financial security for you in the form of unemployment insurance known as the Involuntary Loss of Employment (ILOE). Protecting you from potential job loss and financial instability, this safety net is a boon for every single employee in the nation.

Let us acquaint you with the basis of this insurance, what sort of benefits you can derive from it, how you can subscribe to it, and how you can renew and claim it, among other vital points. This is your one-stop guide to the UAE Unemployment Insurance Scheme (ILOE). 

What is ILOE Insurance in the UAE?

The Government of the UAE has introduced the ILOE insurance under the terms of the UAE Federal Law Decree No. (13) of 2022 to offer financial assistance and support to employees in the event of involuntary job loss. In other words, it helps those employees who lose their jobs for reasons outside their control. The said law lays down the guidelines and structures the legal framework to spell out the timely financial assistance that eligible employees are entitled to receive.

Applicable to employees of both the federal government and the private sector, this insurance provides a monthly cash benefit for up to three consecutive months that can be up to 60% of the average basic salary of an employee calculated over the six months before unemployment.

If you find yourself losing out on your job due to any reason other than voluntary resignation or disciplinary actions, then this insurance can be your saviour. 

It should also be noted that as of January 1st, 2023, it is mandatory for all federal government and private sector employees to subscribe to the ILOE insurance scheme. To be eligible for this insurance, an employee must make monthly contributions to the insurance pool for at least 12 consecutive months.

Eligibility for the UAE Unemployment Insurance (ILOE)

To be eligible for the UAE Unemployment Insurance (ILOE), you need to be an employee working in the federal government or private sector. Both residents and Emiratis are eligible for this insurance. On May 3rd, 2022, this eligibility was extended to employees working in semi-government companies and entities that are registered in any of the free zones of the country. 

Who is Exempted from the ILOE?

The following categories of people are exempted from being eligible for the ILOE.

Investors

Investors who hold investment positions or are owners of companies they work at are not covered by this program.

Domestic Helpers

Domestic helpers, including housemaids and housekeepers, are not eligible for this insurance policy.

Juveniles 

This insurance scheme does not cover workers below the age of 18 years. 

Temporary Workers

The ILOE does not apply to individuals who are employed temporarily. 

Retirees with Pensions

Retirees who have either joined a new job or are already receiving pension benefits are not eligible for this insurance program. 

Benefits of the ILOE Insurance

The ILOE insurance is a multi-beneficiary program that has been thoughtfully initiated by the government to safeguard the financial health of the employees of the federal government and the private sectors of the UAE. 

Under this program, eligible candidates are entitled to receive a monthly cash benefit of up to 60% of the average basic salary of the most recent six months before the loss of employment. The maximum duration for receiving compensation that one can claim is three consecutive months. This duration allows the candidate to find new employment opportunities while not suffering from huge financial instability. 

Another aspect to keep in mind is that during the insurance period that is spread over the entire work life of the insured, one can’t claim payment for more than 12 monthly benefits, irrespective of the number of claims submitted. 

There are varied categories of benefits under this insurance. Whereas Category A candidates can get a maximum monthly benefit of AED 10,000, Category B candidates are eligible to receive a maximum monthly benefit of AED 20,000, etc. 

Another important aspect to note here is that as per Article 11 of Cabinet Decision No. 97/2022, employees who are working in hazardous or challenging environments or those whose job exposes them to demanding conditions and significant risks can negotiate for additional benefits. Depending on the high-risk areas, extreme weather conditions, or remote locations they are working in, they can be eligible for additional pay as outlined in the cabinet decision. 

How to Subscribe to ILOE Insurance?

The subscription process to ILOE Insurance is a straightforward and hassle-free one. Here is a step-by-step description of how to subscribe to the ILOE insurance.

Determining Your Eligibility

First and foremost, you need to make sure you are a UAE national or resident working in the federal government or private sector of the country. You cannot be an investor, domestic worker, juvenile, temporary worker, or retiree under a pension. 

Selecting Your Insurance Category 

As we stated earlier, there are different categories of insurance you can opt for. This selection depends on your salary. There are two broad categories – Category A and Category B. While Category A is for employees with a monthly salary of up to AED 16,000 (monthly premium of AED 5 plus VAT), Category B is for employees with a monthly salary of more than AED 16,000 (monthly premium of AED 10 plus VAT).

Choosing Your Enrolment Option

You can opt for direct enrollment by visiting the official ILOE portal or downloading the mobile app (available for both Apple App Store users and Google Play Store users). You need to register using your Emirates ID and contact details and follow the prompts on your screen to complete your enrolment. Other enrolment options include exchange centres, business centres, kiosks, and SMS, among others. 

Paying Premiums

The next step in the subscription process is deciding on the frequency of your premium payments. You can choose to do it monthly, quarterly, semi-annually, or annually. There are options for both one and two-year policy periods, with the total VAT being included in the first payment. You can make the payment through the official portal of ILOE, the mobile app, or any other official service centres that facilitate such transactions. 

Obtaining Your Certificate of Insurance

After you have completed the enrolment, you will be provided with a certificate of insurance. You can download it from the official portal of ILOE or the app. This certificate serves as the proof of your subscription. 

Maintaining Your Subscription

To continue maintaining your subscription and to ensure you enjoy the benefits of the insurance, you have to make sure that you pay for the premiums regularly as per the frequency chosen by you. In addition, do not forget to regularly update your employment records. 

Subscription Options for ILOE Insurance

The Government of the UAE has ensured there are flexible payment options for the ILOE insurance. Not only do employees get to customize the payment frequency as per their budgeting preferences and financial situations, but they also have the convenience of diverse subscription options. These options allow them to choose the most convenient payment schedule, thereby mitigating the risks of missed payments. 

There are varied channels available to employees to subscribe to the ILOE insurance in the UAE. Here is a quick glance at some of them. 

ILOE Portal

As we have stated above in the ‘Choosing Your Enrolment Option’ section, the official portal of the ILOE can be used to directly access the services of the insurance policy. You can easily register, manage your account, avoid fees, and regularly stay updated on your insurance status through it. 

Mobile App

Available on both the App Store and Google Play Store, you can download and install the dedicated ILOE mobile app. It is widely regarded as the best option for a hassle-free subscription experience, allowing you to manage your policy and pay your premiums directly from your mobile phone. 

Business Centres

Various business centres across the UAE facilitate ILOE payments. You can enrol at any of these centres, such as a Tasheel or Tawjeeh branch, where you will be provided with face-to-face assistance and be guided personally through the process of subscription. 

Exchange Centres

Available at all the branches of Al Ansari Exchange Centres spread over 200 locations in the country, you can get easy access to all the subscription services of ILOE. You can even complete the process through the Al Ansari Exchange App, available on both Apple App Store and Google Play Store. 

Kiosks

You can also head to a nearby MBME (Max Box Middle East) kiosk to perform an on-the-spot enrolment. These kiosks are designed to offer an interactive way to manage your ILOE subscription. 

SMS

Specified telecom users in the UAE, such as Etisalat, can send an SMS with their Emirates ID to 2120 to subscribe to the ILOE insurance program without requiring an internet service. 

Bank Apps and ATMs

Bank Apps and ATM centres also provide the option to integrate your insurance as well as banking transactions in one place. 

Mobile Wallets

You can also use your mobile wallets, such as Google Pay, Apple Pay, or Samsung Pay to pay for your premiums. These are convenient and hassle-free ways to maintain your ILOE subscription. All you need to ensure is that the wallet you are using has a partnership with the insurance provider. 

Direct Debit

Options for setting up a direct debit from your bank account to automate premium payments are also available. This ensures you remain compliant with the requirements of the policy without the need for manual monthly reminders. 

Online Banking

Several banks in the UAE provide the option to directly subscribe to various insurance schemes, including the ILOE program, through their online banking portals. As such, you can manage all your financial services in a secure fashion in one place. 

Insurance Brokers

If you are looking for a more personalized service that features additional assistance, you can subscribe to ILOE through an insurance broker. Such brokers help you in handling paperwork, providing detailed advice, and negotiating terms on your behalf, among others. 

Company Payroll Deduction

Some employers in the UAE provide the option to their employees to have the insurance premium of ILOE deducted directly from their salary. This arrangement can be easily done through the HR department of your company (if your company allows it), thereby streamlining the payment process. 

ILOE Insurance Check

If you want to check out what coverage you are getting from your ILOE insurance, all you need to do is sign in to the official portal of ILOE or the mobile app with the help of your Emirates ID and mobile number. You will be provided with an OTP (One-time Password) to verify your identity. Upon submitting the OTP, you can check out the details of your policy, including your benefits and limitations. 

ILOE Quick Pay

The ILOE Quick Pay is a fast, efficient, and safe service available to employees in the UAE to manage their insurance premiums. It is a digital system that simplifies the subscription and payment process by eliminating the need for physical visits or paperwork. With its help, you can pay your premium from anywhere, anytime through numerous online methods.

It also helps you avoid late payment penalties and offers a user-friendly interface that saves time and energy. It is extremely transparent as you can easily track your payment history and stay regularly updated on the status of your insurance. The convenience, safety, and quick accessibility of this service make it a top choice for thousands and thousands of employees in the country.

To use the ILOE Quick Pay, you need to log in to the ILOE portal or mobile app using your Emirates ID and password. This will securely give you access to your customized dashboard. Next, you need to navigate to the ‘Quick Pay’ section from the main menu or home screen. 

From there, you can select your preferred payment option, such as bank transfers, credit cards, or debit cards. Once you provide the correct payment information and the payment is processed, you will be provided with a confirmation email or message, which shall serve as proof of your payment. 

ILOE Fine/ ILOE Insurance Penalties

Fines have been imposed to ensure that employees remain compliant with the requirements of the insurance scheme. As an eligible employee for the insurance, you will have to incur a fine in the following events.

• Failing to enrol for the scheme within the specified deadline. 
• Missing payment for premiums for the ongoing program. 
• Not renewing or updating the insurance policy in due time.

The UAE Ministry of Human Resources and Emiratisation (MoHRE) issues monetary fines on employees who fail to register for the insurance program or miss their premium payments. Those who fail to subscribe to the program within the grace period are required to pay a fine of AED 400. Those who fail to pay their insurance premiums for more than three months are fined AED 200. 

Non-payments can even lead to policy cancellation. Furthermore, continuous non-payment of insurance premiums can even result in additional penalties that could severely impact the employee’s residency visas or work permit renewals. Essentially, failure to pay fines can majorly affect your legal standing in the country. 

ILOE Insurance Renewal

As per the newly updated rules, the renewal option for the ILOE insurance program is for two years now. This initiative has been undertaken to ensure employees are not bothered by frequent renewal reminders and that they can settle their policy in advance without any interruptions. Try and make sure you renew your insurance policy before it expires. 

To renew the insurance program, you need to go through the following steps.

• First, you need to head to the ILOE portal and click on ‘Subscribe/Renew Here’.
• Next, select your employment category and enter your Emirates ID and mobile number.
• Follow this up by entering the OTP you receive via SMS for verification. Once you log in, you will come across a dashboard that will display your personal details, insurance category, and the total premium for two years.
• Once you confirm your details and agree to the terms and conditions, you need to proceed to payment.
• Enter the details of your payment method and click ‘Pay’.

After the payment is done, you will receive a confirmation message to inform you that the payment is successful. Please keep in mind that you can complete the renewal process from any Tasheel or Tawjeeh branches or any Al Ansari Exchange centres as well. 

How to Claim UAE ILOE Insurance?

The first order of business that you need to keep in mind is that you need to submit a claim for the insurance within 30 days from the date of the loss of your job or the settlement of the labour complaint referred to the judiciary. You can submit the claim through the official portal of the ILOE or the mobile app. You can even contact the ILOE call centre at 600 599 555 or reach out to any other specified channel mentioned by the MOHRE.

Additionally, you need to make sure that you have been subscribed to the program for at least 12 consecutive months and that all your insurance premiums have been paid for. Unemployment must result from any reason other than voluntary resignation or disciplinary action. Furthermore, unemployment must not be a result of a non-peaceful labour action such as a strike or stoppage. Finally, you must be legally residing in the UAE at the time of the claim.

Here is a step-by-step guide to claim the ILOE insurance in the UAE.

 Check eligibility

Make sure your policy is active, premiums are paid, and you fulfil the minimum contribution period. 

Gather documents

Next, gather and assemble all the relevant documents to make the claim. These documents may include the following. 

• Emirates ID copy 
• Employment termination letter 
• Dismissal document 
• Employment contract copy 
• Insurance certificate copy 
• Work permit cancellation document 
• Visa cancellation document 
• IBAN (International Bank Account Number) certificate 
• Travel report 
• Judicial ruling, if applicable

Submit claim

Head to the ILOE portal or the mobile app or reach out to the ILOE call centre. Log in to your account and complete and submit the claim form. 

Track claim

You can check the status of your claim through the official portal or the mobile app. If you are requested to provide additional documents and information, respond swiftly after reading the instructions carefully. 

Receive Benefits

If your claim is approved, then you will receive the benefits as per the terms of your policy to your registered bank account, usually within two weeks.

Please note that you might have to show a travel report to prove that you are legally residing in the UAE. To receive this travel report, you can head to the services page of the General Directorate of Residency and Foreigners Affairs (GDRFA) website called ‘Issuance of statements (entry and exit movement)’. You have to provide your identity proof or passport. With a fee of AED 141, you will be provided with a travel report within 48 hours. 

Financial Security with ILOE

ILOE serves as a financial safety net for employees in the federal government and private sectors of the UAE. It supports them during unexpected unemployment periods by providing them with financial support. The partial income replacement that eligible candidates receive through this insurance program aids them in managing their essential expenses and makes sure they have basic financial stability as they look for a new job.

As such, if you are in an unexpected unemployment stage, you can focus on finding new career opportunities with minimal stress. In the dynamic workforce of today’s time, this insurance scheme is a life saviour and helps people manage the basic living costs of rent, groceries, and utilities.  The financial support that candidates receive during their unemployment stage helps them sustain themselves and their families.

To Conclude

ILOE is the reflection of the relentless efforts of the Government of the UAE to safeguard and support the workforce of the federal government and private sectors of its country. Eligible employees are provided with financial security and peace of mind when they subscribe to this multi-beneficiary insurance scheme. 

If you find yourself in a situation where you lose your job for any reason other than voluntary resignation or disciplinary action, then this scheme is going to serve as a boon for you and provide you with the security blanket you need to get on your feet and take care of yourself and your loved ones. This remarkable initiative by the government has been hailed as a foundational effort to protect the interests and financial health of the employees in the country. 

FAQs

Commonly Asked Questions about ILOE

Is ILOE insurance mandatory in the UAE?

Yes, as of January 1st, 2023, it is mandatory for all federal government and private sector employees to subscribe to the ILOE insurance scheme.

What does ILOE insurance cover?

The ILOE insurance program offers up to 60% of the average basic salary of an employee calculated over the six months before unemployment for up to three consecutive months. This provides them with the financial security they need during their unemployment status and helps them get the support they need as they look for another job. 

How Much Does ILOE Insurance Cost?

The cost of the ILOE insurance depends on your basic salary. There are two broad categories for this insurance program. 

Category A is for those whose basic salary is AED 16,000 or less monthly. This category of insurance costs AED 5 plus VAT every month. On the other hand, Category B is for those whose basic salary is more than AED 16,000. This category costs AED 10 plus VAT every month. Please note that there are options to pay for premiums monthly, quarterly, semi-annually, as well as annually. 

How to check unemployment insurance fines in the UAE?

To check unemployment insurance fines in the UAE, you need to go through the following steps. 

• Visit the official portal or mobile app of ILOE.
• Create an account or log into your existing account using your Emirates ID and the OTP sent to your registered mobile number.
• After logging in, navigate to the ‘Dashboard’.
• Here, you can view your payment status, insurance details, and any outstanding fines.

If you have any fines, the details will be displayed along with the payment deadline.

What is the ILOE insurance renewal grace period?

The ILOE insurance renewal grace period in the UAE is usually 30 days from the expiry date of the policy. This means that you have 30 days after your policy ends to renew it without incurring a penalty.

How to pay ILOE insurance online?

To pay the ILOE insurance online, you need to log in to the ILOE portal or mobile app using your Emirates ID and password. This will safely give you access to your personalized dashboard. After this, you need to go to the ‘Quick Pay’ section from the main menu or home screen. 

Next, you need to choose your preferred payment option, such as bank transfers, credit cards, or debit cards. Once you have provided the correct payment information and the payment is processed, you will be notified with a confirmation email or message, which shall serve as proof of your payment.

How to check the ILOE insurance expiry date?

To check your ILOE insurance expiry date, you can access your online account on the MOHRE website in the UAE. On the policy details page, you will find your ILOE insurance expiry date.

How to check ILOE fines?

To check your ILOE fines, you can use the official portal or mobile app of ILOE. Once you log in with your Emirates ID and registered mobile number, you can go to the ‘Fines’ section and check out the dashboard to view any outstanding fines. You can also use the MOHRE app, log in with your Emirates ID, and go to the ‘Unemployment Insurance Services’ section to check for fines.

How to pay the ILOE fine?

To pay the ILOE fine, you need to visit the ILOE portal or mobile app and log in using your Emirates ID and registered mobile number. Head to the 'Fines' section on your dashboard. Next, you need to choose the payment option and complete the transaction using your preferred payment mode.

How to check your ILOE insurance status?

To check the status of your ILOE insurance, you need to visit the official ILOE portal or use the mobile app, and log in with your credentials. Once logged in, you will get access to your account details and can check your current insurance status.

How to claim unemployment benefits?

To claim unemployment benefits, you need to first make sure you fulfil the eligibility criteria and that all your premiums are paid for.  Gather all the relevant documents for the claim, including your Emirates ID, policy details, employment termination letter, salary proof, and travel report, among others. 

Submit your claim through the official portal, mobile app, or other available channels. Track the status of your claim and respond promptly if any additional document is required from your end. Reach out to the customer care of ILOE if you need further assistance. If your claim is approved, you will be provided with the benefits, usually within 14 days. 

How to handle disputes in ILOE claims?

The ILOE program has been formulated with robust mechanisms to make sure it offers fair resolution and handles disputes while complying with the country’s law. 

To handle disputes in ILOE claims, you should first contact your insurance provider to figure out the reason for the denial of the claim. Assemble any missing documentation, rectify any errors in your claim, and then proceed to formally appeal the decision through the designated channels of the insurer. 

Submit a formal claim through the ILOE portal or mobile app. You can reach out to them through telephone at 600 599 555 or can even email them at claims@iloe.ae. If the appeal is still unsuccessful or unresolved, then you can raise the issue to MOHRE.