How ILOE Insurance Works in UAE?

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 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.

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, 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.

FAQs About How ILOE Insurance Works