How are ILOE benefits calculated?

ILOE benefits are usually calculated as a percentage of your basic salary. Most often, this is up to 60% of your average basic salary over the six months before you lost your job. However, there are limits on how much you can receive each month. If your basic salary is AED 16,000 or less, the maximum benefit you can get is AED 10,000 per month. If your basic salary is more than AED 16,000, the maximum benefit increases to AED 20,000 per month. These benefits are paid for up to three months and are meant to help you cover your essential expenses while you search for a new job.

How ILOE Insurance Works in UAE?

Involuntary Loss of Employment (ILOE) insurance in the UAE is a government-backed scheme designed to provide financial support to employees who lose their jobs due to reasons beyond their control, such as layoffs or company restructuring.

Written ByAashima MongiaContent Writer (Expertise: Term Life Insurance & Investment)

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Last updated on 04 September 2025Editorial Standards

It acts as a temporary safety net, helping individuals manage their basic expenses while searching for new employment.
The process is simple — eligible employees pay a small monthly fee based on their salary. In case of job loss, they can claim up to 60% of their basic salary for three consecutive months. To benefit, the employee must meet certain conditions, like having a valid subscription for at least 12 months and filing the claim within 30 days of termination.

How Dubai ILOE Insurance Support Workers?

The primary goal of the ILOE scheme is to support employees who lose their jobs unexpectedly. It offers temporary financial help so workers can manage their basic living costs while looking for a new job. It is a part of the UAE’s larger plan to improve employee welfare and create a more stable and secure job market.

How Does ILOE Insurance Work?

ILOE insurance in the UAE works in 3 simple steps to support you during unexpected job loss —

Step	Description
1. Pay Monthly Premiums	You pay a small monthly fee based on your basic salary. Two salary categories: Salary ≤ AED 16,000: Claim up to AED 10,000/month (60% of basic salary) for 3 months Salary > AED 16,000: Claim up to AED 20,000/month (60% of basic salary) for 3 months
2. File a Claim	Eligibility and process: Subscribed to ILOE for at least 12 months All premiums paid on time Claim filed within 30 days of job termination Not resigned, dismissed for misconduct, or absconding Must be in UAE while filing the claim Claims can be submitted via website, app, or service centres
3. Receive Benefits	Once approved, you'll receive 60% of your basic salary every month for up to 3 months.

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How Much Does ILOE Insurance Pay in the UAE?

Involuntary Loss of Employment (ILOE) insurance in the UAE offers financial assistance to employees who lose their jobs unexpectedly. Serving as a safety net for both UAE nationals and expatriates, it helps them stay financially stable during periods of unemployment in a competitive job market.

Unemployment Benefits: ILOE insurance provides financial assistance if you lose your job due to reasons beyond your control, such as layoffs, company restructuring, or redundancy. It does not apply if the job loss is due to resignation, fraud, or misconduct.
Salary Compensation: You can receive up to 60% of your average basic monthly salary (based on the last 6 months before job loss). These monthly payments help cover your expenses while you search for a new job.

Frequently Asked Questions

People like business owners, investors, domestic workers, individuals under 18, retired people, and temporary contract workers cannot buy an ILOE insurance.

The main documents include the Emirates ID and the basic employment details.

You can connect with your insurance provider and follow the claim process they provide. To make a claim, you would need to provide job loss proof along with other important documents.

Yes, ILOE insurance is mandatory for employees be they in the private sector, free zones, or the federal government.

ILOE benefits are usually calculated as a percentage of your basic salary. Most often, this is up to 60% of your average basic salary over the six months before you lost your job. However, there are limits on how much you can receive each month.

If your basic salary is AED 16,000 or less, the maximum benefit you can get is AED 10,000 per month.
If your basic salary is more than AED 16,000, the maximum benefit increases to AED 20,000 per month.

These benefits are paid for up to three months and are meant to help you cover your essential expenses while you search for a new job.

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