What is ILOE?
In implementation of the federal decree Law NO.13 of 2022 concerning the unemployment insurance scheme that is ILOE. This unique scheme provide security for employees who lost their jobs.
Implementation date ?
01/01/2023
Is the ILOE mandatory or optional?
Mandatory by MoHRE (deadlines to avoid fines of AED 400/- is 01 October 2023).
Who is eligible?
Emiratis and Residents working in the federal government and private sectors and non-registered companies in MoHRE .
Who is exempted?
Investors | Domestic helpers | Temporary contract worker | Juveniles under the age of 18 | Retirees who are entitled to a pension and joined a new job.
Objectives of the scheme: the insurance scheme aims to:
Provide the insured with income for a limited period of time during his/her unemployment.
Enhance the competitiveness of Emiratis in the labour market.
Provide social protection to ensure continued decent living for the unemployed.
Achieve a competitive knowledge economy by attracting and retaining best international talent.
ILOE subscription plan:
Category A: basic salary below 16,000 AED | Category B: basic salary above 16,000 AED |
AED 5 + VAT / Monthly | AED 10 + VAT / Monthly |
Payment details:
Monthly | Quartey | Semi-annually | Annually in full | 2 years |
AED 5 + VAT | AED 15 + VAT | AED 30 + VAT | AED 60 + VAT | AED 120 + VAT |
Total: 5.25 AED | Total: 15.75 AED | Total: 31.5 AED | Total: 63 AED | Total: 126 AED |
Who is Eligible for claim ?
Job loss scenarios | Compensation's eligibility |
Employee has resigned | Not eligible |
Employer termination in the probation period | Eligible |
Employer termination at any time | Eligible |
Employer termination for a disciplinary action | Not Eligible |
Employer bankrupt | Eligible |
When I can claim my compensation ?
To be eligible for the compensation, the worker must have been paying the monthly premium for at least 12 consecutive months, in the last 6 months prior to the job loss.
MoHRE Labor Contract type ELOE Subscription:
Contract type | Subscription | Compensation |
Full time contract (limited) | Mandatory | Eligible |
Part time 1 year contract | Mandatory | Eligible |
Temporary 6 months contract | Not mandatory | Not Eligible |
Filing for a compensation claim:
The worker must submit the claim within 30 days from the date of his/her unemployment. The insurance company has two weeks, from receiving the claim, to transfer the compensation to the insured's account.
Compensation will be paid from the date he/she loses the job and will be paid for 3 months or until he/she finds a job, whichever is earlier.
Maximum of compensation during your entire wok in the UAE :
12 months in total ( 3 months each time you lose your job).
Compensation benefits:
Category | Compensation percentage | Total months of claim | Maximum compensation |
Category A -16,000 | 60% from the basic salary | Up to 3 months | Up to 10000 AED / monthly |
Category B + 16,000 | 60% from the basic salary | Up to 3 months | Up to 20000 AED / monthly |
Simplified Examples:
Example 1 | Example 2 | Example 3 |
Employee subscribed and paid for 1 year | Employee subscribed and paid for 1 year | Employee subscribed and paid for 1 year |
Effective 01-01-2023 till 01-01-2024 (continually) | Effective 01-01-2023 till 01-01-2024 | Effective 01-04-2023 till 01-04-2024 |
lost his job between January and December 2023 (has worked for 1 or more companies) | lost his job in January 2024. (has worked for 1 company ONLY for the 6 months prior his job loss) | lost his job in January 2024. (He has worked for 2 or 3 companies for the 6 months prior his job loss) |
Not eligible for claim | Eligible for claim | Eligible for claim |
Why: Full 2023 will not be considered as the subscription didn’t exceed 12 months. (compensations are effective 01-01-2024 onwards) | Why: Employee will be compensated for up to 3 months (February March April 2024). | Why: Employee will be compensated for up to 3 months (February March April 2024); the Dubai insurance will decide the average basic salary compared to the companies he worked for in the last 6 months prior his job loss) |
Where to subscribe ILOE?
ILOE portal www.iloe.ae
ILOE mobile app
Great service useful informations