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SIP PlansILOE Insurance Dubai: Cover for Involuntary Job Loss
To boost economic security and support working professionals in the UAE, the federal government has launched the ILOE insurance scheme. This forward-thinking initiative acts as a financial cushion if you lose your job due to circumstances beyond your control. It’s designed not just to protect ...read more
What is ILOE Insurance?
The Involuntary Loss of Employment (ILOE) insurance is a unique scheme that covers employees working in the federal government sector and the private sector in the UAE.
Under this scheme, the policyholder is compensated with a cash amount for a period of up to 3 months per claim if they end up losing their job. However, it’s worth noting that the job loss should not be the result of resignation or disciplinary action.
The scheme is implemented under the Federal Decree Law No. 13 of 2022.
Benefits of the ILOE Insurance Scheme
The ILOE insurance scheme is widely recognised as one of the revolutionary initiatives by the Government of the UAE, thanks to its aim of encouraging economic stability and financial resilience.
Here are the primary advantages of the ILOE insurance program —
- Financial Security – It provides a safety cushion for employees who lose their jobs due to scenarios beyond their control
- Compliance – This program aligns with the UAE Labour Laws and complies with the national employment policies
- Creates a Talent Pool – The ILOE insurance scheme positions the UAE as a global hub for talent, giving assured employment protection
Scope of Coverage under ILOE Insurance
Involuntary Loss of Employment (ILOE) insurance in the UAE is a safety net for both UAE nationals and expats, helping them manage expenses while they look for a new job after losing their previous one unexpectedly.
Here’s a simple breakdown —
What Does It Cover?
- Unemployment Benefits – If you're laid off or made redundant (not due to resignation or misconduct), ILOE pays a monthly benefit
- Salary Percentage – You can receive up to 60% of your average basic salary (based on the last 6 months) each month
Duration of Coverage
- Monthly Limit – Benefits last up to 3 consecutive months per claim.
- Lifetime Limit – You can claim up to 12 months’ worth of benefits during your working life in the UAE
Salary Categories and Payout
- Category A – For those earning up to AED 16,000, the maximum monthly benefit is AED 10,000
- Category B – For those earning above AED 16,000, the maximum monthly benefit is capped at AED 20,000
Optional Add-Ons
- Some insurers allow you to add extra benefits for better coverage
What’s Not Covered?
- People on temporary contracts, domestic workers, investors, minors, retirees back at work, and those fired for disciplinary reasons or who resign
- Job loss caused by war, terrorism, pollution, or other external forces
How to Subscribe to ILOE Insurance?
Subscribing to ILOE (Involuntary Loss of Employment) insurance in the UAE is straightforward and essential to stay compliant with local laws. Here's a step-by-step guide to help you complete the process easily and correctly —
- Access the ILOE Portal or App – Visit the official ILOE website or download the approved app. You can also subscribe through authorised service centres.
- Enter Your Personal and Job Details – Keep your Emirates ID ready. Provide accurate contact and employment information, including your job title and salary bracket, to determine your insurance category.
- Choose the Right Plan – Select a plan based on your monthly salary. Affordable options are available, starting from as little as AED 5 per month for lower-income brackets.
- Check Your Information – Review all the details before submitting. Accurate information ensures your eligibility and smooth claim processing in the future.
- Make the Payment – Pay your premium using secure options such as debit or credit cards or other available online methods.
- Get Confirmation – After payment, you’ll receive a confirmation by SMS or email. Keep it safe as proof of subscription.
- Renew on Time – Most plans require yearly renewal. Set reminders to renew on time and keep your coverage active.
Following these steps helps you stay protected and legally compliant under the UAE’s ILOE insurance scheme.
Note — There are additional ways to subscribe to the ILOE scheme, including —
- Via ILOE Call Centre number – 600 599 555
- Via Exchange Centres licensed in the country
- SMS and Telecom Bills
- Self-service Kiosks
- Banking apps and ATMs for selected banks
- Businessmen's service centres specified by the Ministry
Who Needs to Subscribe to ILOE Insurance UAE?
Before subscribing to ILOE Dubai insurance, you need to understand the eligibility criteria. Here’s who can subscribe to this scheme —
- Employees in the private sector
- Non-resident employees
- Federal government employees
As mentioned earlier, not everyone is eligible for this scheme. Here are some of the exclusions —
- Business owners and investors
- Employees on temporary contracts
- Minors (under the age of 18 years)
- Domestic workers
- Retirees who just started receiving a pension and have started working again
What Happens If You Don’t Subscribe to the ILOE Insurance?
Missing the ILOE (Involuntary Loss of Employment) subscription deadline can lead to serious consequences that affect both your finances and legal status in the UAE. Here's a breakdown of what can happen —
| Consequence | Details |
|---|---|
| Financial Penalty | Missing the subscription deadline may lead to fines of AED 400 or more. Continued delays can result in further penalties. |
| No Access to Benefits | Without an active ILOE subscription, you will not receive unemployment benefits (up to 60% of your basic salary for 3 months) if you lose your job. |
| Legal and Administrative Issues | Non-compliance may cause delays in visa or work contract renewals. Employers may also face complications for non-subscribed employees. |
| Risk to Job Opportunities | Failure to subscribe may reflect poorly on your legal compliance and reduce your chances of being hired by future employers in the UAE. |
| Possible Stricter Enforcement | Being part of a mandatory scheme, repeated delays could invite stricter actions like higher fines or work restrictions. |
Avoid these risks by subscribing to ILOE on time. It ensures you're financially protected during job loss and helps you stay compliant with UAE law
How to Claim Your Dubai ILOE Insurance?
Here’s how to file a claim for your UAE ILOE insurance —
Step 1 – Confirm Your Eligibility
- Before initiating the claim, make sure that your job loss qualifies as per ILOE insurance requirements
- You should legally be present in the UAE
- Ensure that you have contributed to the scheme for at least 12 consecutive months
- The claim should be submitted within 30 days of the date of termination
Step 2 – Gather the Required Documents
- Proof of employment and termination
- Emirates ID
- Salary evidence (salary slips of the last 6 months or bank statements)
Step 3 – Initiate the Claim
- Visit the ILOE platform or app
- Go to the claims section and select the option to initiate a new claim
- Fill in the claim form with precise details about your employment and the nature of your job loss
- Upload all the necessary documents to support the claim
Step 4 – Submit the Claim
- Review all the entered information and check on the documents to ensure accuracy
- Submit the claim and note down the claim reference number provided
Step 5 – Claim Processing
- Once you submit the form, the provider will process the claim
- The processing duration can vary — during this time, the provider might contact you in case they require additional details
Step 6 – Follow Up
- You can track your claim status on the ILOE website or mobile app
- You can also contact the customer care service for updates or assistance
Step 7 – Receive the Benefits
- If the claim is approved, the benefits will be transferred to your bank directly.
- The payment is made within 2 weeks of the claim approval
Step 8 – Address the Discrepancies
- In case of any issues or claim denial, review the reasons the provider gives and consider if you want to appeal the decision
- You can contact the ILOE support team or connect with a legal advisor if required to understand the process further
How to Handle Disputes in the ILOE Insurance Scheme?
If you face any kind of problems in getting an ILOE insurance claim, here’s what you can do —
| Step | Action |
|---|---|
| 1. Gather the Required Documents and Evidence | The first step in handling a dispute is to collect all relevant documents related to your unemployment and the rejected claim. |
| 2. Seek Clarification from the Service Provider | After filing a complaint on the ILOE portal or app, contact the provider for clarification via phone (600 599 555) or email (claims@iloe.ae). |
| 3. Lodge a Formal Complaint | If unresolved, submit a formal complaint to the Ministry of Human Resources and Emiratisation for further investigation. |
| 4. Go for Legal Advice | For complex cases like wrongful termination, consult a legal expert to strengthen your case and understand your legal rights. |
| 5. Initiate Court Proceedings | As a last resort, escalate the dispute to UAE courts. This step involves time and legal costs and should be considered only if other options fail. |
Note — Throughout the process, make sure that you have detailed records of all the communication and responses. Follow up regularly and track all the submissions and documents received.
Frequently Asked Questions
Yes, ILOE insurance is mandatory in Dubai. It offers up to 60% of the policyholder’s basic salary for up to 3 months in case of involuntary job loss.
If the UAE residents make AED 16,000 or under, they should pay AED 5 per month. For those who make more than AED 16,000, the monthly fee is AED 10.
To pay for ILOE insurance online, visit the official portal or the MOHRE mobile app. Log in with your Emirates ID and OTP. Select the subscribe or quick pay option, choose your plan and payment frequency, and enter your card details to complete the payment.
You can easily check your involuntary loss of employment fines through the ILOE portal, Al Hosn App, Smart Services on the UAE Government website, or the MOHRE mobile app.
Emiratis, UAE residents, and non-residents working full-time in the federal government and private sectors need to buy ILOE insurance in Dubai.
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