The unemployment insurance scheme, implemented by UAE’s Ministry of Human Resources and Emiratisation, was announced for all national and expat employees in the public and private sectors in January 2023.
Subscribing to the UAE’s ILOE insurance scheme is mandatory by law if you are a government or private sector employee (even Freezone workers must have an ILOE subscription). Employees who fail to sign up or renew their ILOE insurance policy face a fine of Dh400.
About the Involuntary Loss of Employment Scheme
In implementation of the Federal Decree Law No. 13 of 2022 concerning the Involuntary Loss of Employment (ILOE), this unique Scheme provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job. The eligible employees will be compensated with a Monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to loss of employment.
Cash benefit shall be provided for maximum 3 consecutive months for a claim only for the workers who pay the monthly premium for at least 12 consecutive months.
Who is Eligible to Subscribe?
Emiratis and Residents working in the federal government and private sectors.
Exempted Categories
- Investors (owners of companies they work at)
- Domestic helpers
- Temporary-contract workers
- Juveniles under the age of 18
- Retirees who are entitled to a pension and joined a new job
Compensation Benefits
- The Monthly compensation is 60% of the average basic salary over the most recent 6 months
prior to the Involuntary Loss of Employment. - For Category A: Maximum Claim Benefits : 10,000 AED per month
- For Category B: Maximum claim Amount : 20,000 AED per month
- Maximum compensation for any one claim: 3 consecutive months
- Maximum Period of Benefits: During the Insurance Period over the entire work life of the Insured in the United Arab Emirates the aggregate Claim Payment shall not exceed 12 monthly benefits (regardless of the number of Claims submitted).
PLANS
CATEGORY A
Basic Salary 16,000 AED or below
5 AED+ VAT/MONTH
Compensation Benefit
Up to 10,000 AED / month
Up to 3 months /claim
CATEGORY B
Basic Salary above 16,000 AED
10 AED+ VAT/MONTH
Compensation Benefit
Up to 20,000 AED / month
Up to 3 months /claim
Policy period is available for 1 year or 2 years Full VAT amount added to the 1st installment/payment
Direct Channels
ILOE Mobile App
Contact Details
Call : 600599555
Email : iloehelp@iloe.ae
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Reference: https://www.iloe.ae/