UAE unemployment insurance (ILOE) in 2026: Cost, eligibility and fines

Updated October 2026. Premiums, eligibility and fines checked against the Dubai Government portal (dubai.ae) and MOHRE guidance under Federal Decree-Law No. 13 of 2022 and Cabinet Resolution No. 97 of 2022.

The UAE unemployment insurance scheme, known as ILOE (Involuntary Loss of Employment), is no longer new: it has been mandatory since 2023. It pays a monthly benefit for up to three months if you lose your job for reasons other than resignation or misconduct. This 2026 guide explains who must subscribe, how much it costs, what it pays and the fines for missing it.

What is the ILOE unemployment insurance scheme?

ILOE is a federal insurance scheme set up under Federal Decree-Law No. 13 of 2022. Employees pay a small premium, and if they lose their job involuntarily they receive 60% of their basic salary for up to three months while they look for new work. The scheme is supervised by the Ministry of Human Resources and Emiratisation (MOHRE).

Who has to subscribe to ILOE?

Subscription is mandatory for employees in the private sector and the federal government, both UAE nationals and expats. The following groups are exempt:

• Investors who own the business they work in
• Domestic workers
• Employees on temporary contracts
• Workers under 18
• Retirees who receive a pension and have joined a new job

The employee is responsible for subscribing and paying, not the employer, although some employers choose to pay on their staff’s behalf.

How much does ILOE cost in 2026?

Premiums have not changed since launch. There are two categories based on basic salary:

You can pay monthly, quarterly, every six months or yearly. VAT may be added to the premium.

How do I subscribe or renew?

1. Go to the official ILOE website or the ILOE app, or use an approved channel such as MOHRE service centres and participating banks or exchange houses.
2. Enter your Emirates ID number, mobile number and date of birth.
3. Confirm with the code sent by SMS.
4. Check your details and category, choose a payment frequency and pay.
5. Download your insurance certificate and receipt.

New employees must subscribe within four months of their work permit being issued. Renewal follows the same steps.

Who can claim, and when?

To receive compensation you must:

• Have been subscribed for at least 12 continuous months
• Have paid all premiums on schedule
• Have lost your job for reasons other than resignation
• Not have been dismissed for disciplinary reasons
• Be in the UAE when you claim
• Have no open work absence (absconding) complaint against you

Claims are not paid where the job loss results from fraud, a fictitious employer, or strikes and non-peaceful protests. You must submit your claim within 30 days of losing your job, or of a labour dispute being resolved. Approved claims are paid within two weeks of submission. Payments stop if you start a new job or leave the UAE during the benefit period.

The benefit is based on your average basic salary over the six months before you lost your job.

What are the fines for not having ILOE?

Under Cabinet Resolution No. 97 of 2022:

• AED 400 for not subscribing within the deadline.
• AED 200 for not paying premiums for more than three months after they fall due. Your policy is also cancelled.

Unpaid ILOE fines have real consequences. MOHRE has said that a new work permit will not be issued until outstanding fines are paid, and that fines unpaid for three months can be deducted from your salary through the Wage Protection System or from your end-of-service gratuity.

How do I check and pay an ILOE fine?

1. Open the MOHRE app or website and use the ILOE fine payment service.
2. Search with your Emirates ID, UID, labour card number or personal code.
3. Pay by card, or in person at a MOHRE business service centre.

If you think a fine was issued in error, you can apply for a waiver through the same service.

Is ILOE the only unemployment cover?

ILOE is the mandatory minimum. Some insurers sell optional top-up policies that pay more or for longer. These are private products and their terms vary, so read the policy wording carefully.

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Frequently asked questions

How much is ILOE insurance per month?

AED 5 a month if your basic salary is AED 16,000 or less, and AED 10 a month if it is higher. VAT may be added.

How much does ILOE pay if I lose my job?

60% of your average basic salary, up to AED 10,000 a month in Category 1 or AED 20,000 a month in Category 2, for up to three months.

Can I claim ILOE if I resign?

No. ILOE only pays if you lose your job involuntarily and not for disciplinary reasons.

What is the fine for not subscribing to ILOE?

AED 400. There is a separate AED 200 fine for not paying premiums for more than three months.

Can an unpaid ILOE fine stop me getting a new job?

Yes. MOHRE has said a new work permit will not be issued until outstanding ILOE fines are paid.

Do free zone employees need ILOE?

Yes, private sector employees in free zones are generally covered by the scheme. Check with the ILOE call centre on 600 599 555 if you are unsure about your status.