If you work in the private sector or the federal government, you must subscribe to the unemployment insurance scheme. It costs AED 5 a month plus VAT if your basic salary is AED 16,000 or less, and AED 10 above that. After 12 months, if you lose your job for a reason other than resignation or discipline, it pays 60% of your basic salary for up to three months.
Go to: Who must join · The cost · Fines · Claiming · What it pays
Who must join
The scheme, officially the Involuntary Loss of Employment (ILOE) scheme, was created by Federal Decree-Law No. 13 of 2022. Its official site says it covers "Emiratis and Residents working in the federal government and private sectors". These groups are exempt:
- investors who own the company they work at;
- domestic workers;
- workers on temporary contracts;
- people under 18;
- retirees who receive a pension and have joined a new job.
Deadline for new workers: subscribe within four months of entering the UAE on a work permit, changing your status, or the Ministry's first approval of your work permit, under Ministerial Resolution No. 604 of 2022.
The cost
Your category follows your basic salary, not your total pay.
| Category | Basic salary | Premium | Monthly payout cap |
|---|---|---|---|
| A | AED 16,000 or less | AED 5 a month plus VAT | AED 10,000 |
| B | More than AED 16,000 | AED 10 a month plus VAT | AED 20,000 |
A policy runs for one or two years, and the full VAT is added to your first payment. You can subscribe on the ILOE website or app, and the site also lists kiosks and bank apps and ATMs.
Fines if you do not subscribe or stop paying
Cabinet Resolution No. 97 of 2022 and Ministerial Resolution No. 604 of 2022 set them:
- Not subscribing by the deadline: AED 400.
- Not paying premiums for more than three months after they fall due: your insurance certificate is cancelled and you are fined AED 200. You then have to buy a new policy.
- Fines left unpaid for three months: they are deducted from your wages through the Wage Protection System, or from your end-of-service gratuity.
- No new work permit: until every fine is paid.
You can apply to pay a fine in instalments or ask for a waiver, under Article 9 of Resolution No. 604.
How to claim
The scheme's FAQ sets the conditions:
- You have been subscribed for at least 12 consecutive months, and you have paid every premium on schedule.
- You lost your job for a reason other than resignation.
- You were not dismissed for disciplinary reasons.
- There is no absconding complaint against you, and you are legally present in the UAE.
Claim within 30 days of the end of your job, or of the settlement of a labour complaint that was referred to court. Claim on iloe.ae, in the ILOE app, or through the ILOE call centre on 600 599 555. The scheme must answer and pay within two weeks of your claim, under Resolution No. 604.
The scheme's claim guide asks for your Emirates ID, passport and visa, employment contract, termination letter, residence cancellation (UAE and GCC nationals and Golden Visa holders are exempt), a bank statement, your entry and exit record, and any active labour complaint. All files together must be under 5 MB. The money is paid by bank transfer or through an exchange house.
What it pays
- Amount: 60% of your average basic salary over the six months before you lost your job, up to AED 10,000 a month in Category A and AED 20,000 in Category B.
- How long: up to three consecutive months for each claim, and no more than 12 monthly payments over your whole working life in the UAE.
- When it stops: payments stop if you are hired by another employer, under Article 5 of the decree-law.
Examples:
- Basic salary AED 8,000: you receive AED 4,800 a month, up to AED 14,400 for one claim.
- Basic salary AED 20,000 (Category B): you receive AED 12,000 a month, up to AED 36,000.
Your end-of-service gratuity is a separate entitlement; see how to calculate it. While you look for your next role, see open jobs on TalenDir.
Official sources checked on 29 October 2026. Cover generated with AI for illustration.
