# How ILOE Insurance Works in UAE? **Published:** 2025-05-13T11:23:05.039Z **Updated:** 2026-10-07T09:53:16.800Z **Author:** Aashima Mongia **Reviewer:** Atul Kathuria **Original Url:** https://www.policybazaar.ae/income-protection-insurance/articles/how-iloe-insurance-works-uae/ **We are Rated:** 4.7/5 **Review Count:** 45,327 [Reviews](https://maps.app.goo.gl/Ry9H7NLgFAGso8gZ7) **Trusted Customers:** 2 Million+ **Insurance Partners:** 35+ **Policies Sold:** 1 Million+ The ILOE scheme provides temporary cash compensation if you lose your job involuntarily. Managed by the Dubai Insurance Pool, it acts as a short-term income safety net while you transition to your next career opportunity. But how does ILOE insurance work in practice? You generally need to maintain the subscription for at least 12 consecutive months, keep premiums paid, and meet the other claim conditions. ## How Does ILOE Insurance Work? The easiest way to understand how does ILOE work is to look at it as a five-step process: Subscribe while employed → pay your premiums → complete 12 months of continuous subscription → lose your job involuntarily → submit your claim within the required deadline. If your claim meets the eligibility requirements, you can receive temporary monthly compensation while you look for another job. ### Subscribe While You Are Employed You must subscribe to the [ILOE scheme](https://www.policybazaar.ae/income-protection-insurance/articles/iloe-insurance-uae/) and choose the applicable category based on your basic salary. ### Keep Paying Your Premium You must pay premiums as per your selected payment schedule. If payments remain overdue for more than three months, the insurance certificate can be cancelled. The subscription may be treated as interrupted. ### Complete the 12-Month Qualifying Period You generally need at least 12 consecutive months of subscription before becoming eligible to claim. An interruption of more than three consecutive months can affect your qualifying period. ### Lose Your Job for a Qualifying Reason Your unemployment must be involuntary. Resignation and disciplinary dismissal do not qualify. ### Submit Your Claim Within 30 Days You must generally submit your ILOE claim within 30 days from the termination of your employment relationship. You can submit claims through the ILOE portal, mobile app, call center, or other approved channels. If your claim is approved, ILOE pays compensation in line with the applicable policy limits. ## How ILOE Insurance Supports UAE Workers? The main purpose of ILOE is to offer a temporary financial cushion when an eligible employee suddenly loses their job. UAE workers can use this support for expenses such as: * Rent and housing costs * Loan and credit payments * Utility bills * Groceries and household expenses * School and childcare costs * Job-search and relocation expenses ILOE does not replace your full salary. Instead, eligible employees can receive compensation based on their average basic salary, subject to the applicable category limit and other conditions. For someone who has suddenly lost their primary source of income, even a few months of temporary financial support can help manage essential expenses while searching for another job. ## How Much Does ILOE Insurance Pay in UAE? A common question after understanding how ILOE insurance works is this: how much does ILOE insurance pay in UAE? The scheme has two contribution categories based on your basic salary, not your total salary package. | ILOE Category | Basic Salary | Premium | Maximum Monthly Compensation | | --- | --- | --- | --- | | Category A | AED 16,000 or below | AED 5 + VAT/month | Up to AED 10,000 | | Category B | Above AED 16,000 | AED 10 + VAT/month | Up to AED 20,000 | The ILOE scheme currently allows payment on a monthly, quarterly, semi-annual, or annual basis, depending on the available payment channel. Policy periods are for one or two years. ### Does ILOE Use Basic Salary or Total Salary? ILOE compensation is based on your basic salary, not your total monthly package. For example, if your salary package is: * Basic salary: AED 12,000 * Housing allowance: AED 4,000 * Transport allowance: AED 1,000 Your ILOE calculation is based on the applicable basic salary, not the AED 17,000 total package. The official ILOE calculator specifically asks for the basic salary for each of the six months before the last working date. ## How Much Does ILOE Pay If You Lose Your Job? Eligible employees can receive 60% of their average basic salary over the six months before [unemployment](https://www.policybazaar.ae/income-protection-insurance/articles/unemployment-insurance-scheme-uae/), subject to the category’s maximum monthly compensation. ### Category A For employees with a basic salary of AED 16,000 or below: Maximum compensation: AED 10,000 per month ### Category B For employees with a basic salary above AED 16,000: Maximum compensation: AED 20,000 per month The maximum payment for a single claim is three consecutive months. Across the insured person’s entire period of service in the UAE, aggregate claim payments cannot exceed 12 monthly benefits. ### Example: ILOE Compensation Suppose your average basic salary for the six months before losing your job is AED 12,000. 60% of AED 12,000 = AED 7,200 If you meet all eligibility conditions, your potential ILOE compensation would be: AED 7,200 per month × up to 3 months = AED 21,600 The actual claim decision depends on the official records, supporting documents, and policy conditions. The ILOE calculator itself states that its result is only an estimate and does not confirm entitlement to compensation. Click here to Buy Income Protection Insurance! ## FAQs About How ILOE Insurance Works ### How does ILOE insurance work in UAE? You pay the required premium while employed. After completing at least 12 consecutive months of subscription, you may claim compensation if you lose your job involuntarily and meet all other conditions. Eligible compensation can be up to 60% of your average basic salary for the previous six months, for up to three months per claim. ### How long do I need to pay ILOE before claiming? You generally need to have subscribed for at least 12 consecutive months to be eligible for compensation. ### How soon must I submit an ILOE claim? You generally need to submit your claim within 30 days from the termination of your employment relationship. ### What happens if I stop paying ILOE? If a premium remains unpaid for more than 90 days from its due date, the insurance certificate can be cancelled. You may then need to re-subscribe under a new policy. 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